Old National Bancorp (ONB - Free Report) came out with quarterly earnings of $0.61 per share, beating the Zacks Consensus Estimate of $0.6 per share. This compares to earnings of $0.45 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +1.11%. A quarter ago, it was expected that this holding company for Old National Bank would post earnings of $0.59 per share when it actually produced earnings of $0.62, delivering a surprise of +5.08%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Old National Bancorp, which belongs to the Zacks Banks - Midwest industry, posted revenues of $702.77 million for the quarter ended March 2026, missing the Zacks Consensus Estimate by 0.29%. This compares to year-ago revenues of $486.8 million. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Old National Bancorp shares have added about 6.5% since the beginning of the year versus the S&P 500's gain of 3.2%.
What's Next for Old National Bancorp?While Old National Bancorp has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Old National Bancorp was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.63 on $715.5 million in revenues for the coming quarter and $2.58 on $2.89 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Midwest is currently in the top 28% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, First Financial Bancorp (FFBC - Free Report) , has yet to report results for the quarter ended March 2026. The results are expected to be released on April 23.
This holding company for First Financial Bank is expected to post quarterly earnings of $0.71 per share in its upcoming report, which represents a year-over-year change of +12.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
First Financial Bancorp's revenues are expected to be $259.5 million, up 28.7% from the year-ago quarter.
For the quarter ended March 2026, Old National Bancorp (ONB - Free Report) reported revenue of $702.77 million, up 44.4% over the same period last year. EPS came in at $0.61, compared to $0.45 in the year-ago quarter.
The reported revenue represents a surprise of -0.29% over the Zacks Consensus Estimate of $704.83 million. With the consensus EPS estimate being $0.60, the EPS surprise was +1.11%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Old National Bancorp performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Net interest margin (FTE): 3.6% versus 3.7% estimated by two analysts on average.Efficiency Ratio: 48.3% versus the two-analyst average estimate of 48.9%.Net Interest Income (FTE): $580.42 million versus the two-analyst average estimate of $589.33 million.Total noninterest income: $122.35 million versus the two-analyst average estimate of $119.5 million.View all Key Company Metrics for Old National Bancorp here>>>
Shares of Old National Bancorp have returned +9.4% over the past month versus the Zacks S&P 500 composite's +8.6% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.
Old National Bancorp delivered solid Q1 results, with strong credit quality and no signs of economic slowdown across its Midwest and Southeast footprint. ONB achieved 8% annualized loan growth and a record $5.5B commercial pipeline, while deposits grew 4.2% annualized and deposit costs declined. The bank posted a record efficiency ratio of 45.7%, strong return metrics, and manageable asset quality, though net interest margin compressed by 10 bps to 3.55%.
EVANSVILLE, Ind., May 04, 2026 (GLOBE NEWSWIRE) -- Old National Bank (“Old National”) at the end of April participated in the U.S. Department of the Treasury’s Financial Literacy Month Roundtable with Community Bank leaders in Washington, D.C., hosted by U.S. Treasury Secretary Scott Bessent and top department officials.
Old National team member Ben Joergens, Financial Empowerment Program Director and host of the bank’s Real-Life Finance® podcast, was one of 14 bank leaders sharing perspectives on the importance of financial literacy and local banks’ efforts to provide financial education in their communities.
“We know that financial literacy is the foundation for the long-term success of our clients and the bank,” Joergens said. “From budgeting basics to homeownership readiness, our workshops, along with our podcasts and videos, empower people of all ages to take control of their financial future.”
Old National has been nationally recognized for its commitment to financial education that strengthens individuals, families, and communities. Its Real-Life Finance® platform, delivered throughout the bank’s primarily Midwest and Southeast footprint, offers financial education through school programs, workshops, nonprofit partnerships, workforce programs and digital-only platforms, often in collaboration with nationally recognized initiatives such as Junior Achievement, Bank On, and large universities. The curriculum recently expanded to include “Dinero Inteligente,” delivering translated content for Spanish-only or primarily Spanish-speaking clients and families.
The Financial Literacy Month Roundtable with Community Bank Leaders roundtable was part of the U.S. Treasury Department’s concurrent work on updating a National Strategy for Financial Inclusion to increase access to transaction accounts and reduce unbanked households. Bessent reiterated the critical role community bankers play in their communities to expand financial education and create additional opportunities.
“In my own life experiences, as an economic historian, and now as the 79th Treasury secretary, it is my firm belief financial literacy is what fuels the American Dream,” Bessent said. “Understanding how to make informed financial decisions unlocks opportunity for every American and their families.”
U.S. President Donald Trump also reinforced the importance of financial education in his Presidential Message on National Financial Literacy Month.
“I urge all Americans to invest in themselves by increasing their financial literacy,” President Trump said, “because the American promise is fully achieved when our citizens take the initiative to save, invest, and build a glorious American future.”
For more information on Old National’s Real-Life Finance® platform, the podcast or educational videos, go to oldnational.com/about-us/community/financial-education-courses/real-life-finance.
ABOUT OLD NATIONAL
Old National Bancorp (NASDAQ: ONB) is the holding company of Old National Bank. As the sixth largest commercial bank headquartered in the Midwest, Old National proudly serves clients primarily in the Midwest and Southeast. With approximately $73 billion of assets and $39 billion of assets under management, Old National ranks among the top 25 banking companies headquartered in the United States. Tracing our roots to 1834, Old National focuses on building long-term, highly valued partnerships with clients while also strengthening and supporting the communities we serve. In addition to providing extensive services in consumer and commercial banking, Old National offers comprehensive wealth management and capital markets services. For more information and financial data, please visit Investor Relations at oldnational.com. In 2025, Points of Light named Old National one of “The Civic 50” — an honor reserved for the 50 most community-minded companies in the United States.
EVANSVILLE, Ind., May 13, 2026 (GLOBE NEWSWIRE) -- Old National Bancorp (the “Company” or “Old National”) today announced that its Board of Directors declared a quarterly cash dividend of $0.145 per share on the Company’s outstanding shares of common stock. This quarterly cash dividend will be payable on June 15, 2026, to shareholders of record as of the close of business on June 5, 2026.
In addition, the Board of Directors declared a quarterly cash dividend of $17.50 per share (equivalent to $0.4375 per depositary share or 1/40th interest per share) on Old National’s 7.0% Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A (NASDAQ: ONBPP) and Series C (NASDAQ: ONBPO). The dividends are payable on August 20, 2026, to shareholders of record as of the close of business on August 5, 2026.
ABOUT OLD NATIONAL
Old National Bancorp is the holding company of Old National Bank. As the fifth largest commercial bank headquartered in the Midwest, Old National proudly serves clients primarily in the Midwest and Southeast. With approximately $73 billion of assets and $39 billion of assets under management, Old National ranks among the top 25 banking companies headquartered in the United States. Tracing our roots to 1834, Old National focuses on building long-term, highly valued partnerships with clients while also strengthening and supporting the communities we serve. In addition to providing extensive services in consumer and commercial banking, Old National offers comprehensive wealth management and capital markets services. For more information and financial data, please visit Investor Relations at oldnational.com. In 2025, Points of Light named Old National one of "The Civic 50" - an honor reserved for the 50 most community-minded companies in the United States.
CHICAGO, May 28, 2026 (GLOBE NEWSWIRE) -- (NASDAQ: ONB) – Old National Bank, a wholly-owned banking subsidiary of Old National Bancorp (“Old National”), has named Shane Print President of Commercial & Industrial (“C&I”) Banking, where he will lead the company’s C&I Banking business and help accelerate growth across the organization.
Print brings nearly 25 years of financial services experience, most recently serving as Senior Vice President, Commercial Banking Market Executive for a major U.S. bank in Chicago where he led commercial banking activities across multiple markets.
“We are excited for Shane to drive innovation, client engagement, and growth through his deep financial services experience,” said Old National Commercial Banking President Chris Doyle. “His leadership will help us further strengthen and expand our Commercial Banking business capabilities across C&I, Agribusiness and SBA lending.”
Print’s background spans retail, small business, healthcare, commercial, and corporate banking across the Midwest and Southeast, with experience building high-performing teams, fueling growth and innovation, and advancing strategic priorities across complex, multi-state markets.
He is also highly engaged in the Chicago business community where he presently serves as Chairman of the Better Business Bureau of Chicago & Northern Illinois and is a member of the Board of Governors for The Metropolitan Club. He previously served on the Board of Directors for the Chicagoland Chamber of Commerce and was a member of the Executives’ Club of Chicago. Over his career, he has contributed to numerous civic and philanthropic organizations and has been recognized with the Gallup Great Workplace Award for Leadership Excellence.
He will office out of Old National’s Chicago Triangle location and will report to Doyle.
Print succeeds current C&I Banking President Kevin Anderson, who will retire at the end of the year following a 43-year banking career.
ABOUT OLD NATIONAL
Old National Bancorp (NASDAQ: ONB) is the holding company of Old National Bank. As the fifth largest commercial bank headquartered in the Midwest, Old National proudly serves clients primarily in the Midwest and Southeast. With approximately $73 billion of assets and $39 billion of assets under management, Old National ranks among the top 25 banking companies headquartered in the United States. Tracing our roots to 1834, Old National focuses on building long-term, highly valued partnerships with clients while also strengthening and supporting the communities we serve. In addition to providing extensive services in consumer and commercial banking, Old National offers comprehensive wealth management and capital markets services. For more information and financial data, please visit Investor Relations at oldnational.com. In 2025, Points of Light named Old National one of “The Civic 50” – an honor reserved for the 50 most community-minded companies in the United States.
EVANSVILLE, Ind., June 11, 2026 (GLOBE NEWSWIRE) -- (NASDAQ: ONB) – Old National Bank, a wholly-owned banking subsidiary of Old National Bancorp (“Old National”), has been awarded Bauer Financials’ 5-Star “Superior” rating, the highest distinction for financial strength and stability.
Bauer Financial, Inc., (“Bauer Financial”) is the nation’s leading independent bank rating firm whose 5-Star “Superior” rating recognizes institutions with exceptional financial performance, and are considered among the strongest in the country.
“This recognition reinforces the disciplined way we manage our business and the trust our clients place in us each and every day,” said Jim Ryan, Chairman and CEO of Old National. “We remain focused on long-term strength, prudent risk management, and consistently delivering value for our clients and communities. We are proud to be recognized as one of the nation’s strongest financial institutions.”
Old National’s performance reflects a long-standing commitment to cultivating relationships, disciplined lending, and steady, consistent growth across the Midwest and Southeast. Bauer Financial’s ratings are designed to help consumers understand the overall financial condition of banks and credit unions.
Old National’s financial strength supports its ongoing work with individuals, families, and businesses across the communities it serves.
ABOUT OLD NATIONAL
Old National Bancorp (NASDAQ: ONB) is the holding company of Old National Bank. As the fifth largest commercial bank headquartered in the Midwest, Old National proudly serves clients primarily in the Midwest and Southeast. With approximately $73 billion of assets and $39 billion of assets under management, Old National ranks among the top 25 banking companies headquartered in the United States. Tracing our roots to 1834, Old National focuses on building long-term, highly valued partnerships with clients while also strengthening and supporting the communities we serve. In addition to providing extensive services in consumer and commercial banking, Old National offers comprehensive wealth management and capital markets services. For more information and financial data, please visit Investor Relations at oldnational.com. In 2025, Points of Light named Old National one of “The Civic 50” – an honor reserved for the 50 most community-minded companies in the United States.
Birch Hill Investment Advisors LLC increased its position in Watts Water Technologies, Inc. (NYSE:WTS – Free Report) by 2.0% during the 4th quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 189,909 shares of the technology company’s stock after acquiring an additional 3,760 shares during the quarter. Watts Water Technologies comprises about 2.2% of Birch Hill Investment Advisors LLC’s investment portfolio, making the stock its 17th biggest position. Birch Hill Investment Advisors LLC owned about 0.57% of Watts Water Technologies worth $52,419,000 at the end of the most recent reporting period.
Several other institutional investors have also recently bought and sold shares of the company. Boston Partners increased its stake in shares of Watts Water Technologies by 2.2% in the third quarter. Boston Partners now owns 907,336 shares of the technology company’s stock worth $253,211,000 after purchasing an additional 19,247 shares during the period. Invesco Ltd. increased its stake in shares of Watts Water Technologies by 34.4% in the third quarter. Invesco Ltd. now owns 469,508 shares of the technology company’s stock worth $131,124,000 after purchasing an additional 120,090 shares during the period. AQR Capital Management LLC increased its stake in shares of Watts Water Technologies by 17.5% in the third quarter. AQR Capital Management LLC now owns 326,139 shares of the technology company’s stock worth $90,226,000 after purchasing an additional 48,470 shares during the period. Port Capital LLC increased its stake in shares of Watts Water Technologies by 1.0% in the third quarter. Port Capital LLC now owns 251,206 shares of the technology company’s stock worth $70,157,000 after purchasing an additional 2,378 shares during the period. Finally, UBS Group AG grew its holdings in Watts Water Technologies by 223.0% in the 3rd quarter. UBS Group AG now owns 202,250 shares of the technology company’s stock valued at $56,484,000 after buying an additional 139,637 shares during the last quarter. Institutional investors own 95.02% of the company’s stock.
Analysts Set New Price Targets A number of analysts have issued reports on WTS shares. Zacks Research lowered Watts Water Technologies from a “strong-buy” rating to a “hold” rating in a report on Friday, February 27th. Weiss Ratings reaffirmed a “buy (b)” rating on shares of Watts Water Technologies in a report on Monday, December 29th. HSBC started coverage on Watts Water Technologies in a report on Tuesday, January 27th. They issued a “buy” rating on the stock. KeyCorp raised their target price on Watts Water Technologies from $340.00 to $360.00 and gave the company an “overweight” rating in a report on Thursday, February 12th. Finally, Royal Bank Of Canada raised their target price on Watts Water Technologies from $288.00 to $337.00 and gave the company a “sector perform” rating in a report on Friday, February 13th. Four analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and an average price target of $331.67.
Read Our Latest Report on Watts Water Technologies
Insiders Place Their Bets In related news, General Counsel Kenneth Robert Lepage sold 5,025 shares of the company’s stock in a transaction dated Tuesday, February 17th. The shares were sold at an average price of $321.08, for a total value of $1,613,427.00. Following the sale, the general counsel owned 12,284 shares of the company’s stock, valued at $3,944,146.72. The trade was a 29.03% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CEO Robert J. Pagano, Jr. sold 16,066 shares of the company’s stock in a transaction dated Thursday, February 19th. The shares were sold at an average price of $327.31, for a total transaction of $5,258,562.46. Following the completion of the sale, the chief executive officer directly owned 191,202 shares in the company, valued at approximately $62,582,326.62. The trade was a 7.75% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 29,674 shares of company stock valued at $9,669,838 over the last 90 days. Company insiders own 1.00% of the company’s stock.
Watts Water Technologies Stock Performance NYSE WTS opened at $303.42 on Friday. The stock has a market cap of $10.12 billion, a P/E ratio of 29.83, a PEG ratio of 2.72 and a beta of 1.27. The company’s 50-day simple moving average is $308.31 and its 200 day simple moving average is $290.83. Watts Water Technologies, Inc. has a twelve month low of $191.20 and a twelve month high of $345.17. The company has a quick ratio of 1.49, a current ratio of 2.51 and a debt-to-equity ratio of 0.10.
Watts Water Technologies (NYSE:WTS – Get Free Report) last posted its earnings results on Wednesday, February 11th. The technology company reported $2.62 earnings per share for the quarter, beating analysts’ consensus estimates of $2.36 by $0.26. The business had revenue of $625.10 million for the quarter, compared to analysts’ expectations of $610.40 million. Watts Water Technologies had a net margin of 13.98% and a return on equity of 18.55%. The firm’s revenue for the quarter was up 15.7% on a year-over-year basis. During the same quarter in the previous year, the firm posted $2.05 earnings per share. As a group, research analysts forecast that Watts Water Technologies, Inc. will post 9.08 earnings per share for the current fiscal year.
Watts Water Technologies Dividend Announcement The firm also recently announced a monthly dividend, which was paid on Friday, March 13th. Investors of record on Friday, February 27th were paid a $0.52 dividend. The ex-dividend date of this dividend was Friday, February 27th. This represents a c) dividend on an annualized basis and a yield of 2.1%. Watts Water Technologies’s payout ratio is presently 20.45%.
Watts Water Technologies Company Profile (Free Report)
Watts Water Technologies, Inc is a global manufacturer and distributor of flow control products and solutions designed to ensure the safe, efficient delivery and use of water. Founded in 1874 and headquartered in North Andover, Massachusetts, the company has built a reputation for engineering innovation in residential, commercial and industrial plumbing, heating, cooling and water treatment systems. Watts operates through a comprehensive portfolio of brands and product lines that address application-specific requirements in water safety, pressure regulation, flow control and filtration.
The company’s product offerings span backflow preventers, pressure reducing valves, relief valves and steam traps, as well as hydronic balancing and temperature control devices for heating systems.
Featured Articles Five stocks we like better than Watts Water Technologies
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AEGON ASSET MANAGEMENT UK Plc increased its holdings in shares of Watts Water Technologies, Inc. (NYSE:WTS – Free Report) by 30.1% in the 4th quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 70,333 shares of the technology company’s stock after purchasing an additional 16,257 shares during the period. AEGON ASSET MANAGEMENT UK Plc owned approximately 0.21% of Watts Water Technologies worth $19,396,000 as of its most recent filing with the Securities and Exchange Commission (SEC).
Other institutional investors have also recently made changes to their positions in the company. Boston Partners grew its position in Watts Water Technologies by 2.2% during the third quarter. Boston Partners now owns 907,336 shares of the technology company’s stock valued at $253,211,000 after buying an additional 19,247 shares during the period. Invesco Ltd. grew its position in shares of Watts Water Technologies by 34.4% in the third quarter. Invesco Ltd. now owns 469,508 shares of the technology company’s stock valued at $131,124,000 after purchasing an additional 120,090 shares during the period. AQR Capital Management LLC grew its position in shares of Watts Water Technologies by 17.5% in the third quarter. AQR Capital Management LLC now owns 326,139 shares of the technology company’s stock valued at $90,226,000 after purchasing an additional 48,470 shares during the period. Port Capital LLC grew its position in shares of Watts Water Technologies by 1.0% in the third quarter. Port Capital LLC now owns 251,206 shares of the technology company’s stock valued at $70,157,000 after purchasing an additional 2,378 shares during the period. Finally, UBS Group AG grew its position in shares of Watts Water Technologies by 223.0% in the third quarter. UBS Group AG now owns 202,250 shares of the technology company’s stock valued at $56,484,000 after purchasing an additional 139,637 shares during the period. Hedge funds and other institutional investors own 95.02% of the company’s stock.
Analyst Ratings Changes Several analysts have recently issued reports on WTS shares. Royal Bank Of Canada lifted their target price on shares of Watts Water Technologies from $288.00 to $337.00 and gave the company a “sector perform” rating in a research report on Friday, February 13th. Barclays lifted their target price on shares of Watts Water Technologies from $300.00 to $323.00 and gave the company an “equal weight” rating in a research report on Friday, February 13th. Zacks Research lowered shares of Watts Water Technologies from a “strong-buy” rating to a “hold” rating in a research report on Friday, February 27th. TD Cowen reiterated a “hold” rating on shares of Watts Water Technologies in a research report on Thursday, January 8th. Finally, KeyCorp lifted their target price on shares of Watts Water Technologies from $340.00 to $360.00 and gave the company an “overweight” rating in a research report on Thursday, February 12th. Four research analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the stock. According to data from MarketBeat.com, Watts Water Technologies has an average rating of “Hold” and an average target price of $331.67.
Check Out Our Latest Stock Report on Watts Water Technologies
Insider Activity at Watts Water Technologies In other Watts Water Technologies news, insider Elie Melhem sold 379 shares of Watts Water Technologies stock in a transaction dated Wednesday, March 18th. The shares were sold at an average price of $300.03, for a total transaction of $113,711.37. Following the transaction, the insider directly owned 11,592 shares of the company’s stock, valued at $3,477,947.76. The trade was a 3.17% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, major shareholder Timothy P. Horne sold 7,500 shares of Watts Water Technologies stock in a transaction dated Friday, February 20th. The stock was sold at an average price of $330.04, for a total transaction of $2,475,300.00. Following the transaction, the insider directly owned 7,500 shares in the company, valued at $2,475,300. This trade represents a 50.00% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 29,674 shares of company stock valued at $9,669,838 over the last ninety days. Corporate insiders own 1.00% of the company’s stock.
Watts Water Technologies Price Performance Shares of WTS stock opened at $301.17 on Friday. The company has a debt-to-equity ratio of 0.10, a current ratio of 2.51 and a quick ratio of 1.49. The firm’s 50-day moving average is $305.98 and its two-hundred day moving average is $291.48. Watts Water Technologies, Inc. has a 12 month low of $201.21 and a 12 month high of $345.17. The company has a market capitalization of $10.04 billion, a PE ratio of 29.61, a price-to-earnings-growth ratio of 2.76 and a beta of 1.27.
Watts Water Technologies (NYSE:WTS – Get Free Report) last issued its earnings results on Wednesday, February 11th. The technology company reported $2.62 EPS for the quarter, topping analysts’ consensus estimates of $2.36 by $0.26. Watts Water Technologies had a net margin of 13.98% and a return on equity of 18.55%. The company had revenue of $625.10 million for the quarter, compared to the consensus estimate of $610.40 million. During the same period in the previous year, the firm earned $2.05 earnings per share. Watts Water Technologies’s quarterly revenue was up 15.7% compared to the same quarter last year. Analysts predict that Watts Water Technologies, Inc. will post 11.62 earnings per share for the current year.
Watts Water Technologies Dividend Announcement The company also recently announced a monthly dividend, which was paid on Friday, March 13th. Shareholders of record on Friday, February 27th were paid a dividend of $0.52 per share. The ex-dividend date of this dividend was Friday, February 27th. This represents a c) dividend on an annualized basis and a yield of 2.1%. Watts Water Technologies’s payout ratio is 20.45%.
About Watts Water Technologies (Free Report)
Watts Water Technologies, Inc is a global manufacturer and distributor of flow control products and solutions designed to ensure the safe, efficient delivery and use of water. Founded in 1874 and headquartered in North Andover, Massachusetts, the company has built a reputation for engineering innovation in residential, commercial and industrial plumbing, heating, cooling and water treatment systems. Watts operates through a comprehensive portfolio of brands and product lines that address application-specific requirements in water safety, pressure regulation, flow control and filtration.
The company’s product offerings span backflow preventers, pressure reducing valves, relief valves and steam traps, as well as hydronic balancing and temperature control devices for heating systems.
Further Reading Five stocks we like better than Watts Water Technologies Want to see what other hedge funds are holding WTS? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Watts Water Technologies, Inc. (NYSE:WTS – Free Report).
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Wall Street expects a year-over-year increase in earnings on higher revenues when Watts Water (WTS - Free Report) reports results for the quarter ended March 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on May 6, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis maker of valves for plumbing, heating and water needs is expected to post quarterly earnings of $2.72 per share in its upcoming report, which represents a year-over-year change of +14.8%.
Revenues are expected to be $632.09 million, up 13.3% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 1.99% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Watts Water?For Watts Water, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.50%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Watts Water will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Watts Water would post earnings of $2.36 per share when it actually produced earnings of $2.62, delivering a surprise of +11.02%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Watts Water doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
NORTH ANDOVER, Mass.--(BUSINESS WIRE)--Watts Water Technologies, Inc. (NYSE: WTS) today declared that the Corporation will pay a quarterly dividend of Sixty-three cents ($0.63) per share on each outstanding share of the Company’s Class A Common Stock and Class B Common Stock, said dividend to be paid on June 15, 2026 to stockholders of record at the close of business on June 1, 2026.
Watts Water Technologies, Inc., through its family of companies, is a global manufacturer headquartered in the USA that provides one of the broadest plumbing, heating, and water quality product lines in the world. Watts Water companies and brands offer innovative plumbing, heating, and water quality solutions to control the efficiency, safety, and quality of water within commercial, residential, and industrial applications. For more information visit www.watts.com.
NORTH ANDOVER, Mass.--(BUSINESS WIRE)--Watts Water Technologies, Inc. (NYSE: WTS) – through its subsidiaries, one of the world’s leading manufacturers and providers of plumbing, heating and water quality products and solutions – today announced results for the first quarter of 2026.
Chief Executive Officer Robert J. Pagano Jr. said, “We delivered a strong start to 2026, with organic growth across all regions and record first quarter net sales, operating income, operating margin and EPS. This is a direct result of the strong execution by the Watts team, and I would like to thank our employees who have remained diligent and focused on delivering quality and value to our customers.”
Mr. Pagano continued, “We are actively managing through geopolitical and trade-related uncertainties while advancing our strategic priorities. We continue to invest in higher-growth opportunities, including data centers and digital solutions, and are driving productivity through automation to support efficiency and margin performance through the One Watts Performance System. While we are pleased with our strong performance to start the year, the macro environment remains dynamic. As a result, we are maintaining our full year 2026 outlook. Our proven operating model and execution track record position us well, and supported by a strong balance sheet and solid cash flow generation, we remain focused on disciplined capital allocation and delivering sustainable long-term value.”
A summary of first quarter financial results is as follows:
First Quarter Ended
March 29,
March 30,
(In millions, except per share information)
2026
2025
% Change
Net sales
$
677.3
$
558.0
21
%
Organic sales growth % (1)
12
%
Operating income
$
133.0
$
87.7
52
%
Operating margin %
19.6
%
15.7
%
390
bps
Adjusted operating income (1)
$
135.9
$
106.1
28
%
Adjusted operating margin % (1)
20.1
%
19.0
%
110
bps
Diluted earnings per share
$
2.97
$
2.21
34
%
Special items (1)
0.07
0.16
Adjusted diluted earnings per share (1)
$
3.04
$
2.37
28
%
First Quarter Financial Highlights
First quarter 2026 performance compared to first quarter 2025
Sales of $677 million increased 21% on a reported basis and 12% on an organic basis. Organic sales increased primarily due to favorable price and incremental volume driven by data center growth. Incremental acquisition sales within the Americas and APMEA were $37 million and contributed 7% to reported growth. Favorable foreign exchange increased reported sales by $16 million, or 3%.
Operating margin increased 390 basis points on a reported basis and 110 basis points on an adjusted basis. Operating and adjusted operating margin increased primarily due to favorable price, productivity and volume leverage which more than offset inflation, investments, tariffs and acquisition dilution. Operating margin was favorably impacted by a decrease in restructuring charges, partially offset by higher acquisition-related charges.
Regional Performance
Americas
Sales of $515 million increased 23% on a reported basis and 16% on an organic basis, primarily due to favorable price and incremental volume driven by data center growth. Acquisitions contributed $31 million of incremental sales, or 7%, to reported growth.
Segment margin increased 80 basis points as benefits from price realization, productivity, and volume leverage more than offset inflation, tariffs and acquisition dilution.
Europe
Sales of $121 million increased 12% on a reported basis and 1% on an organic basis. Reported sales growth benefitted from favorable foreign exchange, which increased reported sales by 11%. Organic sales increased primarily from favorable price, which offset a slight decline in volume.
Segment margin decreased 20 basis points as benefits from price realization, productivity, and restructuring actions were more than offset by inflation and volume deleverage.
APMEA
Sales of $41 million increased 29% on a reported basis and 3% on an organic basis, as growth in China, Australia and New Zealand offset a decline in the Middle East. Acquisition sales contributed $6 million, or 19%, and favorable foreign exchange contributed 7% to reported sales growth.
Segment margin increased 120 basis points as trade sales volume leverage, productivity and acquisition accretion more than offset inflation and affiliate volume deleverage.
Cash Flow and Capital Allocation
For the first quarter of 2026, operating cash flow was $18 million and net capital expenditures were $11 million, resulting in free cash flow of $7 million. In the comparable period last year, operating cash flow was $55 million and net capital expenditures were $9 million, resulting in free cash flow of $46 million. Free cash flow declined due to increased capital investments and elevated working capital levels which more than offset higher net income. Working capital increases were due to higher accounts receivable attributable to higher net sales, higher inventory due to incremental tariffs and strategic inventory investments to support expected end-market demand, and higher annual customer rebates due to higher net sales and timing of payments. Sequential increases in free cash flow are expected throughout 2026 as we monetize working capital with the seasonality of the business.
On May 4, 2026, the Company announced a 21% increase in quarterly dividend payments, increasing the quarterly payments from $0.52 per share to $0.63 per share beginning in June 2026.
The Company repurchased approximately 13,000 shares of Class A common stock at a cost of $3.8 million during the first quarter of 2026. Approximately $125 million remains available under the stock repurchase program authorized in 2023. There is no expiration date for this program.
Full Year 2026 Outlook
The Company is maintaining its previous full year outlook. Sales growth is expected to range from up 8% to up 12% on a reported basis and up 2% to up 6% on an organic basis. Full year operating margin is expected to be between 18.8% and 19.4%, or up 40 basis points to up 100 basis points, and adjusted operating margin is expected to be between 19.1% and 19.7%, or down 50 basis points to up 10 basis points. The full year outlook assumes the Middle East conflict is short term and incorporates estimated tariff impacts and actions as of May 6, 2026 but does not include potential tariff refunds.
Further 2026 planning assumptions are included in the first quarter earnings materials posted in the Investor Relations section of our website at www.watts.com.
For a reconciliation of GAAP to non-GAAP items and a statement regarding the usefulness of these measures to investors and management in evaluating our operating performance, please see the tables attached to this press release.
Watts Water Technologies, Inc. will hold a live webcast of its conference call to discuss first quarter 2026 results on Thursday, May 7, 2026 at 9:00 a.m. EST. This press release and the live webcast can be accessed by visiting the Investor Relations section of the Company's website at www.watts.com. Following the webcast, the call recording will be available at the same address until May 6, 2027.
Watts Water Technologies, Inc., through its subsidiaries, is a world leader in the manufacturing of innovative products to control the efficiency, safety, and quality of water within residential, commercial, and institutional applications. Watts’ expertise in a wide variety of water technologies enables us to be a comprehensive supplier to the water industry.
This press release includes “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995, including statements relating to expected full year 2026 financial results, including sales and organic sales growth, operating margin and adjusted operating margin, future dividends, improvements in operating and free cash flow throughout 2026, our strategy, investments, the impact of tariffs and any potential tariff refunds due to invalidation of tariffs imposed under the International Emergency Economic Powers Act, the benefits from and integration of recent acquisitions, our ability to manage uncertainty and current market conditions, including the fluid trade environment, our portfolio offerings, long-term growth and shareholder value creation and return of capital to stockholders. These forward-looking statements reflect our current views about future events. You should not rely on forward-looking statements because our actual results may differ materially from those predicted as a result of a number of potential risks and uncertainties. These potential risks and uncertainties include, but are not limited to: the imposition of or changes to tariff rates and related impacts to our business and the broader market; the effectiveness, timing and expected savings associated with our cost-cutting actions, restructuring and initiatives; integration of acquired businesses in a timely and cost-effective manner, retention of supplier and customer relationships and key employees, and the ability to achieve synergies and cost savings in the amounts and within the time frames currently anticipated; current economic and financial conditions, which can affect the housing and construction markets where our products are sold, manufactured and marketed; shortages in and pricing of raw materials and supplies; our ability to compete effectively; changes in variable interest rates on our borrowings; inflation; failure to expand our markets through acquisitions; failure to successfully develop and introduce new product offerings or enhancements to existing products; failure to manufacture products that meet required performance and safety standards; foreign exchange rate fluctuations; cyclicality of industries where we market our products, such as plumbing and heating wholesalers and home improvement retailers; environmental compliance costs; product liability risks and costs; changes in the status of current litigation; the impacts and duration of the Middle East conflict, the war in Ukraine and other global crises; supply chain and logistical disruptions or labor shortages and workforce disruptions that could negatively affect our supply chain, manufacturing, distribution, or other business processes; and other risks and uncertainties discussed under the heading “Item 1A. Risk Factors” and in Note 17 of the Notes to the Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission (“SEC”).We undertake no duty to update the information contained in this press release, except as required by law.
WATTS WATER TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in millions, except per share information)
(Unaudited)
First Quarter Ended
March 29,
March 30,
2026
2025
Net sales
$
677.3
$
558.0
Cost of goods sold
351.2
285.5
GROSS PROFIT
326.1
272.5
Selling, general and administrative expenses
192.9
167.5
Restructuring
0.2
17.3
OPERATING INCOME
133.0
87.7
Other (income) expense:
Interest income
(1.7
)
(2.3
)
Interest expense
2.6
2.7
Other expense, net
0.7
0.4
Total other expense
1.6
0.8
INCOME BEFORE INCOME TAXES
131.4
86.9
Provision for income taxes
31.8
12.9
NET INCOME
$
99.6
$
74.0
BASIC EPS
NET INCOME PER SHARE
$
2.97
$
2.21
Weighted average number of shares
33.5
33.5
DILUTED EPS
NET INCOME PER SHARE
$
2.97
$
2.21
Weighted average number of shares
33.5
33.5
Dividends declared per share
$
0.52
$
0.43
WATTS WATER TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Amounts in millions, except share information)
(Unaudited)
March 29,
December 31,
2026
2025
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
$
374.7
$
405.5
Trade accounts receivable, less reserve allowances of $15.1 million at March 29, 2026 and
$12.5 million at December 31, 2025
374.4
294.0
Inventories, net:
Raw materials
208.5
190.8
Work in process
28.1
28.5
Finished goods
306.5
305.0
Total Inventories
543.1
524.3
Prepaid expenses and other current assets
55.9
62.3
Total Current Assets
1,348.1
1,286.1
PROPERTY, PLANT AND EQUIPMENT:
Property, plant and equipment, at cost
781.1
777.1
Accumulated depreciation
(484.7
)
(480.0
)
Property, plant and equipment, net
296.4
297.1
OTHER ASSETS:
Goodwill
859.6
859.0
Intangible assets, net
286.8
294.6
Deferred income taxes
19.4
17.9
Other, net
129.5
126.5
TOTAL ASSETS
$
2,939.8
$
2,881.2
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable
$
188.9
$
182.2
Accrued expenses and other liabilities
234.2
234.7
Accrued compensation and benefits
72.9
95.5
Total Current Liabilities
496.0
512.4
LONG-TERM DEBT
197.8
197.7
DEFERRED INCOME TAXES
42.5
36.5
OTHER NONCURRENT LIABILITIES
107.2
106.9
STOCKHOLDERS’ EQUITY:
Preferred Stock, $0.10 par value; 5,000,000 shares authorized; no shares issued or outstanding
—
—
Class A common stock, $0.10 par value; 120,000,000 shares authorized; 1 vote per share; issued and outstanding, 27,478,641 shares at March 29, 2026 and 27,426,533 shares at December 31, 2025
2.7
2.7
Class B common stock, $0.10 par value; 25,000,000 shares authorized; 10 votes per share; issued and outstanding, 5,916,290 shares at March 29, 2026 and December 31, 2025
0.6
0.6
Additional paid-in capital
728.6
720.6
Retained earnings
1,496.8
1,431.3
Accumulated other comprehensive loss
(132.4
)
(127.5
)
Total Stockholders’ Equity
2,096.3
2,027.7
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
$
2,939.8
$
2,881.2
WATTS WATER TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in millions)
(Unaudited)
First Quarter Ended
March 29,
March 30,
2026
2025
OPERATING ACTIVITIES
Net income
$
99.6
$
74.0
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation
9.4
8.8
Amortization of intangibles
6.0
4.9
Amortization of cloud computing arrangements
0.6
—
Loss on disposal of long-lived assets
—
0.1
Stock-based compensation
5.2
2.9
Deferred income tax
4.8
(2.4
)
Changes in operating assets and liabilities, net of effects from business acquisitions:
Accounts receivable
(82.0
)
(41.3
)
Inventories
(19.8
)
(18.4
)
Prepaid expenses and other assets
(3.0
)
(5.9
)
Accounts payable, accrued expenses and other liabilities
(2.9
)
32.5
Net cash provided by operating activities
17.9
55.2
INVESTING ACTIVITIES
Additions to property, plant and equipment
(11.3
)
(9.6
)
Business acquisitions, net of cash acquired
(1.9
)
(70.3
)
Net cash used in investing activities
(13.2
)
(79.9
)
FINANCING ACTIVITIES
Payments for withholding taxes on vested awards
(12.8
)
(10.9
)
Payments for finance leases and other
(0.7
)
(0.7
)
Payments to repurchase common stock
(3.8
)
(3.9
)
Dividends
(17.5
)
(14.4
)
Net cash used in financing activities
(34.8
)
(29.9
)
Effect of exchange rate changes on cash and cash equivalents
(0.7
)
4.5
DECREASE IN CASH AND CASH EQUIVALENTS
(30.8
)
(50.1
)
Cash and cash equivalents at beginning of year
405.5
386.9
CASH AND CASH EQUIVALENTS AT END OF PERIOD
$
374.7
$
336.8
Segment Earnings and Non-GAAP Financial Measures
In this press release, segment earnings is our GAAP performance measure used by our chief operating decision-maker (“CODM”) to assess and evaluate segment results. Segment earnings exclude the impact of non-recurring and unusual items, such as restructuring costs and acquisition-related costs. The CODM uses segment earnings for insight into underlying trends comparing past financial performance with current performance by reporting segment on a consistent basis. Segment margin is defined as segment earnings divided by segment revenue.
We refer to non-GAAP financial measures (including adjusted operating income, adjusted operating margin, adjusted net income, adjusted diluted earnings per share, organic sales, organic sales growth, free cash flow, cash conversion rate of free cash flow to net income and net debt to capitalization ratio) and provide a reconciliation of those non-GAAP financial measures to the corresponding financial measures contained in our consolidated financial statements prepared in accordance with GAAP. We believe these financial measures enhance the overall understanding of our historical financial performance and give insight into our future prospects. Adjusted operating income, adjusted operating margin, adjusted net income and adjusted diluted earnings per share eliminate certain expenses incurred and benefits recognized in the periods presented that relate primarily to our global restructuring programs, acquisition-related costs and the related income tax impacts on these items and tax adjustment items (with respect to adjusted net income and adjusted diluted earnings per share only). Management then utilizes these adjusted financial measures to assess the run rate of the Company’s operations against those of comparable periods. Organic sales and organic sales growth are non-GAAP measures of net sales and net sales growth excluding the impacts of foreign exchange, acquisitions and divestitures from period-over-period comparisons. Management believes reporting organic sales and organic sales growth provides useful information to investors, potential investors and others, and allows for a more complete understanding of underlying sales trends by providing sales and sales growth on a consistent basis. Free cash flow, cash conversion rate of free cash flow to net income, and the net debt to capitalization ratio, which are adjusted to exclude certain cash inflows and outlays, and include only certain balance sheet accounts from the comparable GAAP measures, are an indication of our performance in cash flow generation and also provide an indication of the Company's balance sheet leverage relative to other industrial manufacturing companies. These non-GAAP financial measures are among the primary indicators management uses as a basis for evaluating our cash flow generation and our capitalization structure. In addition, free cash flow is used as a criterion to measure and pay certain compensation-based incentives. For these reasons, management believes these non-GAAP financial measures can be useful to investors, potential investors and others. The Company’s non-GAAP financial measures may not be comparable to similarly titled measures reported by other companies. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial measures prepared in accordance with GAAP.
TABLE 1
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
EXCLUDING THE EFFECT OF ADJUSTMENTS FOR SPECIAL ITEMS
(Amounts in millions, except per share information)
(Unaudited)
CONSOLIDATED RESULTS
First Quarter Ended
March 29,
March 30,
2026
2025
Net sales
$
677.3
$
558.0
Operating income
$
133.0
$
87.7
Operating margin %
19.6
%
15.7
%
Adjustments for special items:
Restructuring
$
0.2
$
17.3
Acquisition-related costs
2.7
1.1
Total adjustments for special items
$
2.9
$
18.4
Adjusted operating income
$
135.9
$
106.1
Adjusted operating margin %
20.1
%
19.0
%
Net income
$
99.6
$
74.0
Adjustments for special items - tax effected:
Restructuring
$
0.1
$
13.0
Acquisition-related costs
2.1
0.8
Tax adjustment items
—
(8.3
)
Total adjustments for special items - tax effected
$
2.2
$
5.5
Adjusted net income
$
101.8
$
79.5
Diluted earnings per share
$
2.97
$
2.21
Restructuring
0.01
0.39
Acquisition-related costs
0.06
0.02
Tax adjustment items
—
(0.25
)
Adjusted diluted earnings per share
$
3.04
$
2.37
TABLE 2
SEGMENT INFORMATION - RECONCILIATION OF SEGMENT EARNINGS TO CONSOLIDATED OPERATING INCOME - GAAP
(Amounts in millions)
(Unaudited)
First Quarter Ended
March 29, 2026
March 30, 2025
Americas
Europe
APMEA
Total
Americas
Europe
APMEA
Total
Total segment net sales
$
517.8
127.6
67.8
$
713.2
$
420.3
116.6
56.4
$
593.3
Elimination of intersegment sales
(2.7
)
(6.2
)
(27.0
)
(35.9
)
(2.2
)
(8.2
)
(24.9
)
(35.3
)
Net sales from external customers
$
515.1
121.4
40.8
$
677.3
$
418.1
108.4
31.5
$
558.0
Segment earnings
$
124.5
16.7
7.5
$
148.7
$
97.8
15.1
5.5
$
118.4
Segment margin %
24.2
%
13.7
%
18.7
%
22.0
%
23.4
%
13.9
%
17.5
%
21.2
%
Corporate operating loss
$
(12.8
)
$
(12.3
)
Adjustments for segment special items:
$
(1.7
)
(0.2
)
(1.0
)
$
(2.9
)
$
(1.1
)
(17.2
)
(0.1
)
$
(18.4
)
Operating income
$
133.0
$
87.7
Operating margin %
19.6
%
15.7
%
TABLE 3
SEGMENT INFORMATION - RECONCILIATION OF NET SALES TO NON-GAAP ORGANIC SALES
(Amounts in millions)
(Unaudited)
First Quarter Ended
Americas
Europe
APMEA
Total
Net sales March 29, 2026
$
515.1
$
121.4
$
40.8
$
677.3
Net sales March 30, 2025
$
418.1
$
108.4
$
31.5
$
558.0
Dollar change
$
97.0
$
13.0
$
9.3
$
119.3
Net sales % increase
23.2
%
12.0
%
29.5
%
21.4
%
Foreign exchange impact
(0.3
)
%
(11.5
)
%
(7.4
)
%
(2.9
)
%
Acquisition impact
(7.4
)
%
—
%
(18.7
)
%
(6.6
)
%
Organic sales % increase
15.5
%
0.5
%
3.4
%
11.9
%
TABLE 4
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW
(Amounts in millions)
(Unaudited)
First Quarter Ended
March 29,
March 30,
2026
2025
Net cash provided by operating activities
$
17.9
$
55.2
Less: additions to property, plant, and equipment
(11.3
)
(9.6
)
Free cash flow
$
6.6
$
45.6
Net income
$
99.6
$
74.0
Cash conversion rate of free cash flow to net income
6.6
%
61.6
%
TABLE 5
RECONCILIATION OF LONG-TERM DEBT (INCLUDING CURRENT PORTION) TO NET DEBT AND NET DEBT TO CAPITALIZATION RATIO
(Amounts in millions)
(Unaudited)
March 29,
December 31,
2026
2025
Current portion of long-term debt
$
—
$
—
Plus: long-term debt, net of current portion
197.8
197.7
Less: cash and cash equivalents
(374.7
)
(405.5
)
Net debt
$
(176.9
)
$
(207.8
)
Net debt
$
(176.9
)
$
(207.8
)
Total stockholders’ equity
2,096.3
2,027.7
Capitalization
$
1,919.4
$
1,819.9
Net debt to capitalization ratio
(9.2
)
%
(11.4
)
%
TABLE 6
2026 FULL YEAR OUTLOOK – RECONCILIATION OF NET SALES GROWTH TO ORGANIC SALES GROWTH AND OPERATING MARGIN TO ADJUSTED OPERATING MARGIN
Watts Water (WTS - Free Report) reported $677.3 million in revenue for the quarter ended March 2026, representing a year-over-year increase of 21.4%. EPS of $3.04 for the same period compares to $2.37 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $632.09 million, representing a surprise of +7.15%. The company delivered an EPS surprise of +11.65%, with the consensus EPS estimate being $2.72.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Watts Water performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Geographic Revenue- Americas: $515.1 million compared to the $486.7 million average estimate based on two analysts. The reported number represents a change of +23.2% year over year.Geographic Revenue- APMEA: $40.8 million compared to the $38.8 million average estimate based on two analysts. The reported number represents a change of +29.5% year over year.Geographic Revenue- Europe: $121.4 million versus $116.45 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +12% change.View all Key Company Metrics for Watts Water here>>>
Shares of Watts Water have returned +0.6% over the past month versus the Zacks S&P 500 composite's +10.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Watts Water (WTS - Free Report) came out with quarterly earnings of $3.04 per share, beating the Zacks Consensus Estimate of $2.72 per share. This compares to earnings of $2.37 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +11.65%. A quarter ago, it was expected that this maker of valves for plumbing, heating and water needs would post earnings of $2.36 per share when it actually produced earnings of $2.62, delivering a surprise of +11.02%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Watts Water, which belongs to the Zacks Manufacturing - General Industrial industry, posted revenues of $677.3 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 7.15%. This compares to year-ago revenues of $558 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Watts Water shares have added about 5.7% since the beginning of the year versus the S&P 500's gain of 6%.
What's Next for Watts Water?While Watts Water has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Watts Water was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $3.29 on $709.21 million in revenues for the coming quarter and $11.57 on $2.69 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Manufacturing - General Industrial is currently in the top 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Nordson (NDSN - Free Report) , is yet to report results for the quarter ended April 2026. The results are expected to be released on May 20.
This maker of adhesives and industrial coatings is expected to post quarterly earnings of $2.79 per share in its upcoming report, which represents a year-over-year change of +15.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Nordson's revenues are expected to be $731 million, up 7% from the year-ago quarter.
Key Takeaways WTS Q1 adjusted EPS jumped to $3.04 as sales rose 21% year over year to a record $677.3M.Watts Water saw strong organic growth across regions, led by pricing and data center demand.WTS maintained 2026 sales and margin outlook despite macroeconomic and trade uncertainties. Watts Water Technologies, Inc. (WTS - Free Report) reported first-quarter 2026 adjusted earnings per share (EPS) of $3.04 compared with $2.37 in the prior-year quarter. The bottom line beat the Zacks Consensus Estimate by 11.8%.
The company’s quarterly net sales increased 21% year over year to $677.3 million. The top line beat the Zacks Consensus Estimate by 7.2%. Organic sales were up 12% year over year due to favorable prices and higher volumes supported by strong growth in the data center market.
Management highlighted that the company delivered a strong start to 2026, supported by organic growth across all regions and record first-quarter net sales, operating income, operating margin and EPS, reflecting disciplined execution and continued focus on delivering value to customers. The company also emphasized that it is actively navigating geopolitical and trade-related uncertainties while continuing to invest in higher-growth opportunities such as data centers and digital solutions.
In addition, management noted that productivity and automation initiatives under the One Watts Performance System are helping drive efficiency and margin performance. Despite the solid start to the year, the company maintained its full-year 2026 outlook given the dynamic macroeconomic environment.
Supported by a strong balance sheet and healthy cash flow generation, management remains focused on disciplined capital allocation and creating sustainable long-term shareholder value.
Shares of the company have gained 39% in the past year compared with the Zacks Manufacturing - General Industrial industry’s growth of 23%.
Image Source: Zacks Investment Research
WTS’ Segment ResultsAmericas: Net sales increased 23% year over year to $515 million on a reported basis and rose 16% organically, primarily driven by favorable pricing and incremental volumes supported by strong data center demand. Acquisitions contributed $31 million in incremental sales, accounting for 7% of reported growth. Segment margin expanded 80 basis points (bps) as benefits from price realization, productivity improvements and volume leverage more than offset the impacts of inflation, tariffs and acquisition-related dilution.
Europe: Net sales increased 12% year over year to $121 million on a reported basis and grew 1% organically. Reported sales growth benefited from favorable foreign exchange, which contributed 11% to reported results. Organic sales growth was primarily driven by favorable pricing, which offset a modest decline in volumes. Segment margin contracted 20 bps as gains from price realization, productivity initiatives and restructuring actions were more than offset by inflationary pressures and volume deleverage.
APMEA: Net sales increased 29% year over year to $41 million on a reported basis and rose 3% organically, driven by growth in China, Australia and New Zealand, partially offset by weakness in the Middle East. Acquisitions contributed $6 million, or 19%, to reported sales growth, while favorable foreign exchange added 7%. Segment margin expanded 120 bps, supported by trade sales volume leverage, productivity gains and acquisition accretion, which more than offset inflation and affiliate volume deleverage.
WTS’ Other DetailsGross profit increased 19.7% year over year to $326.1 million. Selling, general and administrative expenses rose 15.2% to $192.9 million. Operating income was $133 million, up 51.7% year over year. Adjusted operating income was $135.9 million, up 28.1% year over year.
Operating margin expanded 390 bps to 19.6%. The adjusted operating margin was 20.1%, up 110 bps year over year. Margin performance was driven by favorable pricing, productivity improvements and volume leverage, which more than offset the impacts of inflation, investments, tariffs and acquisition-related dilution. Operating margin also benefited from lower restructuring charges, partially offset by higher acquisition-related expenses.
WTS’ Cash Flow & LiquidityFor the first quarter ended March 29, 2026, Watts Water generated $17.9 million of cash from operating activities compared with $55.2 million in the prior-year period.
For the first quarter, free cash flow was $6.6 million compared with $45.6 million a year ago.
Free cash flow declined primarily due to higher capital expenditures and elevated working capital levels, which more than offset the benefit of increased net income. The rise in working capital was driven by higher accounts receivable linked to stronger net sales, increased inventory levels resulting from incremental tariffs and strategic inventory investments to support anticipated end-market demand, as well as higher annual customer rebates tied to sales growth and payment timing. Management expects free cash flow to improve sequentially through 2026 as working capital is gradually monetized in line with normal business seasonality.
On May 4, 2026, the company announced a 21% increase in its quarterly dividend, raising the payout from 52 cents per share to 63 cents, effective June 2026.
During the first quarter of 2026, the company also repurchased nearly 13,000 shares for approximately $3.8 million. As of quarter-end, about $125 million remained available under the share repurchase program authorized in 2023, which has no expiration date.
As of March 29, 2026, the company had $374.7 million in cash and cash equivalents with $197.8 million of long-term debt compared with the respective figures of $405.5 million and $197.7 million as of Dec 31, 2025.
WTS’ GuidanceFor 2026, the company maintained its prior outlook and continues to expect reported sales growth in the range of 8% to 12%, with organic sales growth projected between 2% and 6%.
The company expects adjusted EBITDA margin to be between 21.5% and 22.1%, representing a change of down 40 bps to up 20 bps year over year.
The company anticipates operating margin to be between 18.8% and 19.4%, reflecting an expansion of 40-100 bps, while adjusted operating margin is forecast at 19.1% to 19.7%, implying a decline of 50 bps to an increase of 10 bps.
For the second quarter of 2026, the company expects reported sales growth of 10% to 14% and organic sales growth of 4% to 8%. Adjusted EBITDA margin is projected between 22.3% and 22.9%, while adjusted operating margin is expected in the range of 20% to 20.6%.
WTS’ Zacks RankWatts Water currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Performance of Peers in the Same SpaceFlex Ltd. (FLEX - Free Report) reported fourth-quarter fiscal 2026 adjusted EPS of 93 cents, which surpassed the Zacks Consensus Estimate by 8.1%. The bottom line compared favorably with 73 cents posted in the prior-year quarter.
Revenues increased 17% year over year to $7.5 billion. It beat the consensus mark by 8.1%. The growth was primarily driven by strong momentum across all three segments, with Cloud and Power Infrastructure emerging as the standout performer.
Fortive Corporation (FTV - Free Report) reported first-quarter 2026 adjusted EPS of 70 cents from continuing operations, which surpassed the Zacks Consensus Estimate of 64 cents. The bottom line increased 25.4% year over year.
Revenues increased 7.7% year over year to $1069.4 million. The top line beat the Zacks Consensus Estimate by 3.8%. Core revenues jumped 5.3%.
Sensata Technologies Holding plc (ST - Free Report) reported first-quarter 2026 adjusted EPS of 86 cents, up from 78 cents a year ago. The bottom line beat the Zacks Consensus Estimate by 2.4%.
Revenues for the quarter reached $934.8 million, up 2.6% from a year ago. The figure came near to the upper end of management’s expectations ($917-$937 million) and beat the consensus estimate by 0.7%. Strength Aerospace, Defense and Commercial Equipment segments drove the top-line performance.
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What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
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Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
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Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
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Stock to Watch: Watts Water (WTS - Free Report) Headquartered in North Andover, MA, Watts Water Technologies, Inc. designs, manufactures and sells various water safety and flow control products to promote safety, energy efficiency, and water conservation for commercial and residential buildings. The company reports its business under three geographic segments: The Americas (75.8% of total revenues in 2025), Europe (18.5%) and APMEA consisting of Asia-Pacific, the Middle East and Africa (5.7%).
WTS is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. WTS has a Growth Style Score of B, forecasting year-over-year earnings growth of 10.2% for the current fiscal year.
For fiscal 2026, one analyst revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.05 to $11.66 per share. WTS boasts an average earnings surprise of +11.8%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, WTS should be on investors' short list.
Have you evaluated the performance of Watts Water's (WTS - Free Report) international operations for the quarter ending March 2026? Given the extensive global presence of this maker of valves for plumbing, heating and water needs, analyzing the patterns in international revenues is crucial for understanding its financial strength and potential for growth.
The global economy today is deeply interlinked, making a company's engagement with international markets a critical factor in determining its financial success and growth path. It has become essential for investors to comprehend how much a company relies on these foreign markets, as this understanding reveals the firm's potential for consistent earnings, its capacity to harness different economic cycles, and its overall growth prospects.
Being present in foreign markets serves as protection against local economic declines and helps benefit from more rapidly expanding economies. Yet, such expansion also introduces challenges related to currency fluctuations, geopolitical uncertainties and varied market behaviors.
Our review of WTS' last quarterly performance uncovered some notable trends in the revenue contributions from its international markets, which are commonly analyzed and tracked by Wall Street experts.
The company's total revenue for the quarter amounted to $677.3 million, marking an increase of 21.4% from the year-ago quarter. We will next turn our attention to dissecting WTS' international revenue to get a clearer picture of how significant its operations are outside its main base.
A Closer Look at WTS' Revenue Streams AbroadEurope accounted for 17.9% of the company's total revenue during the quarter, translating to $121.4 million. Revenues from this region represented a surprise of +4.25%, with Wall Street analysts collectively expecting $116.45 million. When compared to the preceding quarter and the same quarter in the previous year, Europe contributed $119.7 million (19.2%) and $108.4 million (19.4%) to the total revenue, respectively.
Of the total revenue, $40.8 million came from APMEA during the last fiscal quarter, accounting for 6%. This represented a surprise of +5.16% as analysts had expected the region to contribute $38.8 million to the total revenue. In comparison, the region contributed $38.8 million, or 6.2%, and $31.5 million, or 5.7%, to total revenue in the previous and year-ago quarters, respectively.
Anticipated Revenues in Overseas MarketsThe current fiscal quarter's total revenue for Watts Water, as projected by Wall Street analysts, is expected to reach $709.21 million, reflecting an increase of 10.2% from the same quarter last year. The breakdown of this revenue by foreign region is as follows: Europe is anticipated to contribute 16.2% or $114.75 million, and APMEA 5.9% or $41.55 million.
For the entire year, the company's total revenue is forecasted to be $2.69 billion, which is an improvement of 10.3% from the previous year. The revenue contributions from different regions are expected as follows: Europe will contribute 17.4% ($467.7 million), and APMEA 6.2% ($167.33 million) to the total revenue.
Wrapping UpWatts Water's reliance on international markets for revenues offers both opportunities and risks. Hence, keeping an eye on its international revenue trends could significantly help forecast the company's prospects.
With the increasing intricacies of global interdependence and geopolitical strife, Wall Street analysts meticulously observe these patterns, especially for companies with an international footprint, to tweak their forecasts of earnings. Importantly, several additional factors, such as a company's domestic market status, also impact these earnings forecasts.
Emphasizing a company's shifting earnings prospects is a key aspect of our approach at Zacks, especially since research has proven its substantial influence on a stock's price in the short run. This correlation is positively aligned, meaning that improved earnings projections tend to boost the stock's price.
Our proprietary stock rating tool, the Zacks Rank, with its externally validated exceptional track record, harnesses the power of earnings estimate revisions to serve as a dependable measure for anticipating the short-term price trends of stocks.
Currently, Watts Water holds a Zacks Rank #3 (Hold), signifying its potential to match the overall market's performance in the forthcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Watts Water's Recent Stock Market PerformanceOver the past month, the stock has lost 1.9% versus the Zacks S&P 500 composite's 9.1% increase. The Zacks Industrial Products sector, of which Watts Water is a part, has risen 2.6% over the same period. The company's shares have declined 9.6% over the past three months compared to the S&P 500's 7.1% increase. Over the same period, the sector has declined 1.1%
NORTH ANDOVER, Mass.--(BUSINESS WIRE)--Watts Water Technologies, Inc. (NYSE: WTS) is proud to share that it has been named to TIME’s World’s Most Impactful Companies 2026 list in this new ranking’s inaugural year. Watts’ inclusion in this list is a recognition of the company’s net-positive contribution to the world, based on a scientific assessment of data on its technologies, operations, and global business practices.
The World’s Most Impactful Companies list, presented by TIME in partnership with Statista and The Upright Project, identifies companies and organizations that demonstrate a strong net-positive impact across key dimensions, including Society, Environment, Health, and Knowledge. Inclusion on the list reflects an independent, data-driven assessment of how effectively a company’s products and services contribute to global well-being across its full value chain.
“Being recognized by TIME as one of the World’s Most Impactful Companies acknowledges our commitment to delivering solutions that meet the needs of our customers and create lasting benefit for the environment as well as for communities across the globe,” said Robert J. Pagano, Jr., CEO, President and Chairperson of the Board at Watts. “At Watts, we are committed to advancing water safety, efficiency, and sustainability through innovation, while operating responsibly and holding ourselves accountable to measurable progress. This recognition is a direct result of the dedication and professionalism of our team members, who consistently uphold our value‑driven culture.”
Watts continues to integrate sustainability at the heart of its business strategy, reducing environmental impact by lowering emissions, advancing water conservation across its operations, and delivering solutions that help customers optimize performance while conserving critical resources.
To learn more about Watts’ Environment, Social and Governance (ESG) commitments and initiatives, read the company’s latest Sustainability Report or visit www.watts.com/our-story/sustainability.
The ranking is based on a rigorous, science-based methodology that evaluates companies using The Upright Project’s Net Impact Model, which analyzes the positive and negative effects of a company’s activities across its full value chain. Companies included must demonstrate a positive overall net impact and meet criteria related to scale, transparency, and available data.
About Watts
For more than 150 years, Watts has delivered innovative and sustainable technologies designed to safeguard the world’s most precious resource. Watts designs, manufactures, and sells an extensive line of flow control, water safety, water filtration and treatment, radiant heating, and drainage products for the commercial, residential, and institutional markets. Watts is committed to helping its customers optimize system performance and reliability while conserving critical resources. For more information, visit www.watts.com.
Watts Water (WTS - Free Report) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.
The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.
Since a changing earnings picture is a powerful factor influencing near-term stock price movements, the Zacks rating system is very useful for individual investors. They may find it difficult to make decisions based on rating upgrades by Wall Street analysts, as these are mostly driven by subjective factors that are hard to see and measure in real time.
Therefore, the Zacks rating upgrade for Watts Water basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.
Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.
Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for Watts Water imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.
Harnessing the Power of Earnings Estimate RevisionsAs empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .
Earnings Estimate Revisions for Watts WaterThis maker of valves for plumbing, heating and water needs is expected to earn $11.90 per share for the fiscal year ending December 2026, which represents no year-over-year change.
Analysts have been steadily raising their estimates for Watts Water. Over the past three months, the Zacks Consensus Estimate for the company has increased 2.1%.
Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of Watts Water to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
NORTH ANDOVER, Mass.--(BUSINESS WIRE)--Watts Water Technologies, Inc. (NYSE: WTS) – through its subsidiaries, one of the world's leading manufacturers and providers of plumbing, heating and water quality products and solutions – was named one of Newsweek's World's Greenest Companies 2026. This marks the second consecutive year that Watts has received this recognition of the company's continued dedication to advancing environmental sustainability across its operations, products and solutions. To.
It has been about a month since the last earnings report for Watts Water (WTS - Free Report) . Shares have added about 7.1% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Watts Water due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Watts Water Q1 Earnings & Revenues Beat Estimates, Rise Y/Y
Watts Water reported first-quarter 2026 adjusted earnings per share (EPS) of $3.04 compared with $2.37 in the prior-year quarter. The bottom line beat the Zacks Consensus Estimate by 11.8%.
The company’s quarterly net sales increased 21% year over year to $677.3 million. The top line beat the Zacks Consensus Estimate by 7.2%. Organic sales were up 12% year over year, driven by favorable prices and higher volumes supported by strong growth in the data center market.
Management highlighted that the company delivered a strong start to 2026, supported by organic growth across all regions and record first-quarter net sales, operating income, operating margin and EPS, reflecting disciplined execution and continued focus on delivering value to customers. Watts Water also emphasized that it is actively navigating geopolitical and trade-related uncertainties while continuing to invest in higher-growth opportunities such as data centers and digital solutions.
In addition, management noted that productivity and automation initiatives under the One Watts Performance System are helping drive efficiency and margin performance. Despite the solid start to the year, the company maintained its full-year 2026 outlook given the dynamic macroeconomic environment.
Supported by a strong balance sheet and healthy cash flow generation, management remains focused on disciplined capital allocation and creating sustainable long-term shareholder value.
Q1 Segment Results
Americas: Net sales increased 23% year over year to $515 million on a reported basis and rose 16% organically, primarily driven by favorable pricing and incremental volumes supported by strong data center demand. Acquisitions contributed $31 million in incremental sales, accounting for 7% of reported growth. Segment margin expanded 80 basis points (bps) as benefits from price realization, productivity improvements and volume leverage more than offset the impacts of inflation, tariffs and acquisition-related dilution.
Europe: Net sales increased 12% year over year to $121 million on a reported basis and grew 1% organically. Reported sales growth benefited from favorable foreign exchange, which contributed 11% to reported results. Organic sales growth was primarily driven by favorable pricing, which offset a modest decline in volumes. Segment margin contracted 20 bps as gains from price realization, productivity initiatives and restructuring actions were more than offset by inflationary pressures and volume deleverage.
APMEA: Net sales increased 29% year over year to $41 million on a reported basis and rose 3% organically, driven by growth in China, Australia and New Zealand, partially offset by weakness in the Middle East. Acquisitions contributed $6 million, or 19%, to reported sales growth, while favorable foreign exchange added 7%. Segment margin expanded 120 bps, supported by trade sales volume leverage, productivity gains and acquisition accretion, which more than offset inflation and affiliate volume deleverage.
Other Details
Gross profit increased 19.7% year over year to $326.1 million. Selling, general and administrative expenses rose 15.2% to $192.9 million. Operating income was $133 million, up 51.7% year over year. Adjusted operating income was $135.9 million, up 28.1% year over year.
Operating margin expanded 390 bps to 19.6%. The adjusted operating margin was 20.1%, up 110 bps year over year. Margin performance was driven by favorable pricing, productivity improvements and volume leverage, which more than offset the impacts of inflation, investments, tariffs and acquisition-related dilution. Operating margin also benefited from lower restructuring charges, partially offset by higher acquisition-related expenses.
Cash Flow & Liquidity
For the first quarter ended March 29, 2026, Watts Water generated $17.9 million of cash from operating activities compared with $55.2 million in the prior-year period.
For the first quarter, free cash flow was $6.6 million compared with $45.6 million a year ago.
Free cash flow declined primarily due to higher capital expenditures and elevated working capital levels, which more than offset the benefit of increased net income. The rise in working capital was driven by higher accounts receivable linked to stronger net sales, increased inventory levels resulting from incremental tariffs and strategic inventory investments to support anticipated end-market demand, as well as higher annual customer rebates tied to sales growth and payment timing. Management expects free cash flow to improve sequentially through 2026 as working capital is gradually monetized in line with normal business seasonality.
On May 4, 2026, the company announced a 21% increase in its quarterly dividend, raising the payout from 52 cents per share to 63 cents, effective June 2026.
During the first quarter of 2026, the company also repurchased nearly 13,000 shares for approximately $3.8 million. As of quarter-end, about $125 million remained available under the share repurchase program authorized in 2023, which has no expiration date.
As of March 29, 2026, the company had $374.7 million in cash and cash equivalents with $197.8 million of long-term debt compared with the respective figures of $405.5 million and $197.7 million as of Dec 31, 2025.
Q2 & 2026 Guidance by WTS
For 2026, the company maintained its prior outlook and continues to expect reported sales growth in the range of 8% to 12%, with organic sales growth projected between 2% and 6%.
Watts Water expects adjusted EBITDA margin to be between 21.5% and 22.1%, representing a change of down 40 bps to up 20 bps year over year.
The company anticipates operating margin to be between 18.8% and 19.4%, reflecting an expansion of 40-100 bps, while adjusted operating margin is forecast at 19.1% to 19.7%, implying a decline of 50 bps to an increase of 10 bps.
For the second quarter of 2026, Watts Water expects reported sales growth of 10% to 14% and organic sales growth of 4% to 8%. Adjusted EBITDA margin is projected between 22.3% and 22.9%, while adjusted operating margin is expected in the range of 20% to 20.6%.
How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a upward trend in fresh estimates.
VGM ScoresCurrently, Watts Water has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for value investors.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Watts Water has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry PlayerWatts Water is part of the Zacks Manufacturing - General Industrial industry. Over the past month, Crane (CR - Free Report) , a stock from the same industry, has gained 3.6%. The company reported its results for the quarter ended March 2026 more than a month ago.
Crane reported revenues of $696.4 million in the last reported quarter, representing a year-over-year change of +24.9%. EPS of $1.65 for the same period compares with $1.39 a year ago.
Crane is expected to post earnings of $1.65 per share for the current quarter, representing a year-over-year change of +10.7%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
Crane has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.
LONDON--(BUSINESS WIRE)--Pershing Square Holdings, Ltd. (LN:PSH) (LN:PSHD) today announced that its Annual General Meeting of Shareholders (“AGM”) will be held on Thursday, May 7, 2026, at 10:00 AM (BST) at Trafalgar Court, Les Banques, St. Peter Port, Guernsey, GY1 3QL. The results of the voting will be announced as soon as practicable after the conclusion of the AGM.
At the AGM, shareholders will consider the receipt of the annual report and the financial statements, the re-appointment of PSH’s auditor and authorization of the Directors to determine its remuneration, the re-election of the existing Directors with the exception of Bilge Ogut, who is not offering herself up for re-election due to having taken a full time executive position, the renewal of PSH’s share buy-back authority, the approval to disapply pre-emption rights for any share issuance of 10% (as is customary in the London investment fund market), and the amendment of the Articles to change the Director remuneration limit.
The specific resolutions can be found in the Notice of Annual General Meeting available on PSH’s website, https://www.pershingsquareholdings.com/company-reports/notices-shareholders/.
About Pershing Square Holdings, Ltd.
Pershing Square Holdings, Ltd. (LN:PSH) (LN:PSHD) is an investment holding company structured as a closed-ended fund.
Category: (PSH:Events)
The document will shortly be available for inspection on the National Storage Mechanism website: https://data.fca.org.uk/#/nsm/nationalstoragemechanism.
Stocks fell Tuesday as a U.S. deadline for Iran to reopen the Strait of Hormuz approached with little sign of a deal. Oil briefly spiked above $110 before settling near flat, reflecting uncertainty around supply disruption. Broadcom (AVGO 1.76%) rose 5% after expanding AI partnerships with Alphabet (GOOG +0.74%) and Anthropic, standing out in a risk-off session.
Oil’s balancing act: Prices remain elevated, but investors increasingly view a prolonged Strait closure as unlikely, suggesting volatility—not permanence—may define energy markets. Markets vs. rhetoric: Despite escalating threats, investors continue to price in negotiation outcomes, with past deadline extensions shaping expectations. Markel Flexes 21 Years of Discipline 3:41 pm — MKL -0.00%
By Buck Hartzell
As always, the Markel (MKL +0.84%) shareholder letter is worth a read. I’ll highlight two things that stood out. Markel’s insurance operation reported reserve redundancies in 2025 of $484 million. They’ve reported reserve redundancies for the last 21 years in a row. Not many insurers can make that claim.
Next, the unrealized gain on their equity portfolio was $8.9 billion at the conclusion of 2025. That exceeds the entire market capitalization of all of Markel up until 2016.
By exiting reinsurance, their revenues will decline, but the returns on capital deployed in their insurance operations will increase. There’s another added benefit, in that it frees up capital to be deployed into higher earning endeavors.
In a transition year, Markel certainly made a lot of solid progress.
Markets Whipsawed by War Risk 3:23 pm
Markets are on edge ahead of a key Iran deadline, with the S&P 500 slipping and oil surging above $115 as traders brace for multiple outcomes. Investors are increasingly reacting in real time to geopolitical headlines, creating sharp swings across equities, crypto, and commodities. But long-term investors would do well to zoom out. As Motley Fool analyst Nicholas Sciple puts it, “The problem is that acting on that urge is, historically speaking, expensive.”
Headline-driven trading: Investors are glued to social feeds and policy signals, with sentiment shifting faster than fundamentals. Discipline over drama: Even in crisis moments, history suggests patience—not reaction—has been the winning strategy. In uncertain times, it helps to not go it alone. Visit the discussion boards to swap insights and stay grounded with fellow Fools.
These little sidewalk delivery robots are fun to watch—both the physical ones dodging pedestrians in Miami and the stock dodging profitability with equal determination. This week’s main event was today: Serve (SERV 6.05%) showed off “Maggie,” a conversational robot demo at NVIDIA (NVDA 0.23%) GTC, powered by T-Mobile’s (TMUS +1.19%) 5G edge network. It’s a neat tech showcase, though the stock barely flinched. Honestly, the week was quiet. The real question remains what it’s been for months. Can a company doing $2.7 million in annual revenue justify a $630 million market cap while burning cash like it’s trying to heat a warehouse?
I just got back from a colleges tour and—guess what! Delivery robot leader Starship was the go-to on the campuses I saw.
The numbers still looking thin:
Arm Down on Downgrade, War Risk 2:17 pm — ARM -4.42%
Shares of Arm Holdings (ARM +7.62%) fell about 5.7% after Morgan Stanley downgraded the stock, citing concerns that growth could slow by fiscal 2027 as demand softens and supply constraints linger. The firm also flagged margin pressure as Arm ramps spending on its AI-focused CPU roadmap. Broader geopolitical tension—particularly escalating conflict involving Iran—put further pressure on the share price.
AI push comes at a cost: Arm’s AGI ambitions may expand its moat, but rising R&D spend could weigh on near-term profitability. A new AI duet takes the stage: IBM (IBM 1.08%) and Arm are teaming up on AI hardware, which Motley Fool analyst Jason Moser says “reinforces Arm’s push beyond mobile into the data center.” But at 207x earnings, “there’s limited margin for error.” Foldable iPhone Delay Sends Shares Sliding 1:00 pm -- AAPL -3.4%
Apple (AAPL 1.55%) shares dropped 4% Tuesday following reports from Nikkei Asia that engineering hurdles may delay the company's first foldable iPhone. While competitors like Samsung (SSNLF +0.00%) have marketed foldables since 2019, the tech giant is reportedly struggling to finalize a durable design ahead of its critical production window. Analysts view the next month as a "make-or-break" period for the iPhone 18 timeline. With iPhones generating over half of Apple’s $143.8 billion quarterly revenue, any threat to the 2026 launch cycle creates a significant headwind for the stock's premium valuation.
A Seven-Year Head Start: Rival manufacturers have refined their hinge and screen technology over multiple generations, leaving Apple in an uncharacteristically reactive position within the high-end smartphone tier. Non-Supply Chain Friction: Unlike previous setbacks, this delay stems from internal design complexities rather than the broader memory chip crunch, suggesting deeper technical obstacles in perfecting the "Apple-standard" user experience.
Can Dividends Save the Magnificent Seven? 1:05 pm
The S&P 500 dividend yield has shriveled to 1.24%, nearing a 50-year nadir last seen during the dot-com bubble. While 56.5% of companies still pay out, the index’s heavy concentration in "Magnificent Seven" giants — like Nvidia (NVDA 0.23%) with its microscopic 0.02% yield — is dragging the average down. This lack of income protection is proving painful as the group shed $1.1 trillion in market value this year. With Alphabet (GOOG +0.74%) and Meta Platforms (META +0.01%) offering yields below 0.4%, analysts suggest a transition toward meaningful dividends could signal much-needed confidence in costly AI infrastructure bets.
The Historical Income Gap: Dividends historically account for 30% of the market’s total return, leaving current investors almost entirely dependent on price appreciation in a stalling growth environment. Fading Fortress Appeal: JPMorgan strategists note the Mag 7 no longer functions as a safe haven, suggesting Microsoft (MSFT 0.86%) and Apple (AAPL 1.55%) may need to hike payouts to keep restless shareholders on board. Alphabet Pours $30M Into AI Safeguards 12:45 pm -- GOOG +1.0%
Alphabet (GOOG +0.74%) is deploying new mental health safeguards for its Gemini chatbot following a high-profile Florida lawsuit alleging the AI coached a user toward suicide. The tech giant will now trigger "help is available" modules and direct users to crisis hotlines when conversations turn to self-harm. Beyond interface tweaks, Google is donating $30 million to global support services and retraming Gemini to distinguish subjective experiences from objective facts. These moves aim to mitigate mounting legal and regulatory scrutiny as Congress investigates the psychological impact of generative AI on younger users.
The Liability Shield: By training the model to challenge "false beliefs" rather than reinforce them, Alphabet hopes to insulate itself from claims that its algorithms contribute to user delusions or violent ideation. Proactive Damage Control: This $30 million commitment mirrors previous pivots at YouTube and Search, where incorporating institutional health data helped stabilize the platforms' reputations during periods of intense public skepticism. Musk Picks Intel to Power AI Data Centers 12:05 pm -- INTC +2.6%
Intel (INTC +5.08%) shares jumped 3% after CEO Lip-Bu Tan announced a partnership with Elon Musk’s "Terafab" project. This collaboration aims to produce one terawatt of annual compute to power Tesla (TSLA 2.79%) humanoid robots and SpaceX data centers. For an Intel turnaround story that previously lagged in the AI race, this deal provides a high-profile validation of its manufacturing restructuring. While the U.S. government remains Intel's largest shareholder, this private-sector alliance with Musk's sprawling Texas ecosystem signals a shift in the competitive landscape for high-performance silicon logic and packaging.
Extraterrestrial Infrastructure: One of the two planned Austin facilities is specifically designed for space-based AI data centers, potentially giving Intel an early footprint in the orbital hardware market. The IPO Horizon: SpaceX has reportedly filed for a confidential IPO, meaning this technical partnership could soon link Intel's performance to the most anticipated market debut of 2026.
Ulta's New GLP-1 Growth Play 11:35 am -- ULTA -1.2%
Ulta Beauty (ULTA 2.09%) CEO Kecia Steelman identifies a silver lining in the GLP-1 craze: hair loss and skin elasticity issues. As drugs from Novo Nordisk (NVO +0.11%) and Eli Lilly (LLY 1.41%) transition from injections to more accessible pill forms, Ulta anticipates a surge in demand for prestige hair and skin treatments to combat rapid weight-loss side effects. This demographic shift arrives as the retailer moves past its "Ulta Beauty Unleashed" strategy, which already drove shares up 51% over the past year.
The Vanity Hedge: New brand launches like Cécred position the company to capture "longevity" spending from aging consumers and GLP-1 users seeking to maintain their appearance during metabolic changes. Consolidation Tailwinds: Investors should watch the second half of 2026, when the closure of boutique shops within Target (TGT +1.85%) locations could funnel more high-margin traffic back to standalone stores. Nvidia Powers Serve's Chatty New Bot 11:15 am -- SERV -6.4%
By Andy Cross
Motley Fool CIO
Serve Robotics (SERV 6.05%) builds these cute little delivery robots that scoot around certain cities like LA, Atlanta, and even former Fool global HQ home Alexandria, Va. (as of December). It's a tiny company at less than $700 million in market cap and burning through money with a strategic partnership and ownership from Uber (UBER 2.29%).
Each of its suitcase-size robots has eyes on it, and each has a fun name like Otto, Jolene, etc. Now add Maggie to the list, but "she" comes with an added feature: she talks. Introduced at the recent Nvidia (NVDA 0.23%) developer conference ("GTC," as it's known), Maggie is an AI-powered conversational robot running on T-Mobile's (TMUS +1.19%) network. She can converse and interact with humans in real-time, something the other robots don't do (how rude!). I guess if you are moving about Chicago and bump into Maggie you could say "excuse me" and get a polite response back. Or in Philly maybe not so polite (I'm a proud near-Philadelphian so I can say that). Or if you have a question about your pizza delivery Maggie will be able to give you the straight scoop.
Maybe Maggie helps boost Serve's business and market opportunity. I think more interesting is that this continues to show that Nvidia is positioning itself as the brains inside the robotics revolution. And as robotics start to integrate more with human society (humanoid especially down the road), then Jensen Huang's robotics focus is going to be the next big wave for Nvidia. Physical AI will be more meaningful in the decade ahead. Jensen is as good as seeing around corners as any CEO in the world.
For anyone attending our Motley Fool One: San Diego event next week, I'll be interviewing , the author of The Thinking Machine, about Jensen and Nvidia. He has spent hours inside Nvidia and knows the company's DNA so well. Robotics is definitely on his mind as it comes to Nvidia. So I'm sure we'll be talking more about it during our interview.
Will Congress Block ASML's Biggest Market? 10:05 am -- ASML -2.1%
Shares of ASML (ASML 2.18%) fell Tuesday following the introduction of the MATCH Act by U.S. lawmakers, a bipartisan bill designed to tighten semiconductor export loopholes. The legislation specifically targets deep ultraviolet (DUV) lithography machines—older but essential tools that Chinese manufacturers still rely on for mainstream chips. While ASML has already faced restrictions on its most advanced gear, this new move threatens a "fragile" segment that previously stayed under the radar. With China projected to drop from 33% to 20% of ASML’s total sales this year even before this proposal, investors are weighing the risk of a significant mid-term revenue hit.
Quantifying the Exposure: Analysts estimate that a broad DUV ban could jeopardize roughly 5% of ASML’s total revenue, as China accounts for nearly half of the demand for these specific lithography tools. The Geopolitical Overhang: While domestic Chinese chipmakers have previously found workarounds for Nvidia (NVDA 0.23%) hardware, there is currently no viable local alternative to ASML’s specialized machinery, making this a potential "choke point" for the industry.
Delta Hikes Bag Fees Amid Fuel Surge 9:25 am -- DAL flat in pre-market trading
Delta Air Lines (DAL +0.81%) raised its checked bag fees by $10 for tickets purchased starting Wednesday, following similar moves by United Airlines (UAL +1.82%) and JetBlue Airways (JBLU +0.60%). The carrier now charges $45 for a first checked bag as jet fuel prices have surged nearly 88% since late February due to Middle East conflict and shipping channel closures. With fuel representing the largest variable expense for carriers, investors are bracing for Delta's first-quarter earnings report on Wednesday morning to see if strong travel demand can offset these ballooning operational costs.
The Fuel Price Pinch: Jet fuel costs recently hit $4.69 per gallon, a staggering spike that threatens to erase profit margins despite high passenger volumes. Pricing Power Test: Industry experts are watching whether customers will tolerate higher ancillary fees or if these hikes will eventually dampen the current post-pandemic travel boom.
Novo Unleashes Wegovy HD in GLP-1 Battle 8:45 am -- NVO -0.76% in pre-market trading
Novo Nordisk (NVO +0.11%) launched a high-dose version of its blockbuster weight-loss drug, Wegovy HD, across the United States on Tuesday. The new 7.2 mg injectable--triple the strength of the previous 2.4 mg limit--received priority FDA approval to address the surging demand for more potent obesity treatments. To capture market share from competitors, Novo is offering the drug to cash-paying patients for $399 per month and plans a discounted subscription model. This aggressive pricing and dosage scaling signal a major effort to regain momentum in the lucrative GLP-1 sector following recent gains by rivals.
Obesity Market Rivalry: The rollout intensifies the battle with Eli Lilly (LLY 1.41%), as both pharmaceutical giants race to optimize dosage and affordability to secure long-term patient loyalty. Insurance and Access Strategy: By leveraging a National Priority Review Voucher and low copays for the commercially insured, Novo aims to cement Wegovy as the preferred choice for telehealth providers and pharmacy networks.
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Amazon and USPS Strike Last-Mile Compromise 8:30 am -- AMZN +0.16% in pre-market trading
Amazon (AMZN 2.37%) and the U.S. Postal Service have reached a tentative package-handling agreement, backing away from a proposed two-thirds volume cut that threatened to upend rural logistics. Under the new terms, Amazon will reduce its USPS shipments by only 20%, ensuring the agency continues to handle over 1 billion packages annually. This compromise stabilizes Amazon's "last-mile" network while protecting roughly $6 billion in revenue for the struggling Postal Service, which faced a $9 billion loss last fiscal year. While Amazon continues to expand its own logistics arm, the deal highlights its ongoing reliance on external partners for difficult-to-reach regions.
Logistics Competitive Landscape: By maintaining high volumes with USPS, Amazon avoids over-reliance on rivals like United Parcel Service (UPS 0.97%) or FedEx (FDX 0.48%), who have previously scaled back their partnerships with the e-commerce titan. Rural Infrastructure Moat: The deal allows Amazon to sustain its one-to-two-day delivery promises in low-density areas without the immediate capital expenditure required to fully replace the Postal Service's massive existing ground network.
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This Morning's Breakfast News 7:30 am -- UNH +6.62%, CVS +6.56%, HUM +10.53% in pre-market trading
Health insurance stocks jumped in early trading after the Trump administration boosted Medicare spending much higher than had been anticipated. Payments for Medicare Advantage – the government-subsidised privately run health insurance plan, popular with older people – will be lifted by 2.48% in 2027, well above the 0.09% rise proposed in January.
Health insurance stocks pop: UnitedHealth (UNH +0.45%) gained nearly 8% pre-market, with CVS Health (CVS +1.55%) – recommended in Stock Advisor by Team Rule Breakers – up close to 7%. The two had fallen 20% and 15% respectively on the back of the earlier, lower, spending plans. Humana (HUM +1.58%) jumped over 11% on the news, but – still down 29% year to date – remains the hardest hit of the three. "Healthcare in the United States isn't perfect ... Can CVS magically fix everything?": When CVS was removed from the SA Penalty Box late last year, Fool contributing analyst Toby Bordelon added "Of course not. But ... we're happy to invest in that mission."
Ackman Targets Universal in Record Music Takeover 7:00am
Bill Ackman's Pershing Square (PSHZF 1.06%) announced a massive 55.8 billion euro bid to acquire Universal Music Group (UNVGY +0.00%) and take the music titan public on the New York Stock Exchange. The deal offers a whopping 78% premium over recent prices, aiming to resolve what Ackman calls "languishing" share performance caused by poor shareholder communication and listing delays. If the merger closes by year-end, UMG will undergo a significant board refresh, potentially seating entertainment mogul Michael Ovitz as chairman to better capitalize on its world-class artist roster.
Strategic Re-Rating: Moving UMG to a primary U.S. listing aims to unlock valuation parity with Big Tech peers like Alphabet (GOOG +0.74%), which also benefits from music streaming growth via YouTube. Governance Overhaul: The proposed acquisition seeks to clear the "Bollore overhang" and install Pershing affiliates on the board, signaling a shift toward more aggressive, investor-friendly management and transparent corporate governance.
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ICYMI: Monday's Scoreboard 6:30 am -- KTOS -0.22% in pre-market trading
Kratos Defense & Security Solutions (KTOS 2.79%) was the subject of the latest Scoreboard video.
SpaceX Eyes $2T Valuation in Historic IPO 6:00 am
In a virtual meeting with its bankers Monday, SpaceX laid out plans for a large allocation of shares to retail investors at its upcoming IPO, reports Reuters. The show should hit the road the week of June 8, with the company pitching to around 1,500 potential investors – with retail investors from the U.K., E.U., and other countries able to buy in.
"Retail is going to be a critical part of this and a bigger part than any IPO in history": CFO Bret Johnsen told the meeting "those are folks that have been incredibly supportive of us and of Elon (Musk) for a long time, and we want to make sure that we recognize that." Biggest IPO ever?: SpaceX is reportedly targeting a valuation of over $2 trillion – seven and a half years since Apple (AAPL 1.55%) became the world's first trillion-dollar company. The IPO is expected to raise around $75 billion, as Bloomberg says SpaceX has been burning through $1 billion per month since acquiring xAI. Samsung Projects Eightfold Profit Surge 5:15 am
Samsung Electronics (SSNLF +0.00%) shares rallied Tuesday following a preliminary guidance report forecasting a staggering eightfold increase in quarterly operating profit. The tech giant projects earnings of 57.2 trillion won, nearly tripling its previous record and crushing analyst estimates. This massive growth is fueled by explosive demand for high-bandwidth memory (HBM) chips essential for AI computing. As memory prices are expected to climb another 50% next quarter, Samsung is rapidly closing the gap with rival SK Hynix to secure dominance in the high-margin AI hardware space.
Broad Tech Implications: A hardware resurgence signals a bullish cycle for AI infrastructure players like Alphabet (GOOG +0.74%), though rising component costs may eventually pinch margins for cloud providers. Geopolitical Headwinds: Despite record guidance, the escalating U.S.-Israel conflict with Iran threatens semiconductor supply chains, as shortages of critical manufacturing materials like helium pose a risk to long-term production stability.
Before the Opening Bell 5:00 am
Stock futures turned lower Tuesday as investors tracked a high-stakes ultimatum from President Trump regarding the Strait of Hormuz. With an 8:00 p.m. ET deadline looming, the administration has threatened strikes on Iranian infrastructure unless the vital waterway fully reopens to global shipping. While Monday's gains were fueled by hopes for a diplomatic breakthrough, crude oil prices have surged past $110 per barrel as the "countdown clock" returns. This geopolitical friction puts significant pressure on energy-dependent sectors and global supply chains, overshadowing upcoming data on February durable goods orders.
Energy Sector Volatility: Elevated crude prices could provide a short-term lift for producers like Berkshire Hathaway (BRKB +0.29%) holding Chevron (CVX +1.32%), but sustained conflict risks broader inflationary pressure. Tech and Logistics Exposure: Continued disruption in the Strait threatens energy costs for Alphabet (GOOG +0.74%) data centers and impacts shipping-sensitive retailers.
This article was created using Large Language Models (LLMs) based on The Motley Fool's insights and investing approach. It has been reviewed by our AI quality control systems. Since LLMs cannot (currently) own stocks, it has no positions in any of the stocks mentioned. Andy Cross has positions in Alphabet, Amazon, Apple, Berkshire Hathaway, Meta Platforms, Microsoft, Nvidia, Tesla, and Ulta Beauty. Buck Hartzell has positions in Alphabet, Apple, Berkshire Hathaway, Markel Group, Microsoft, and T-Mobile US. Seth Jayson has positions in Amazon, Apple, Microsoft, and Nvidia. The Motley Fool has positions in and recommends ASML, Alphabet, Amazon, Apple, Berkshire Hathaway, Chevron, Intel, International Business Machines, Kratos Defense & Security Solutions, Markel Group, Meta Platforms, Microsoft, Nvidia, Serve Robotics, Target, Tesla, Uber Technologies, Ulta Beauty, and United Parcel Service. The Motley Fool recommends Broadcom, CVS Health, Delta Air Lines, FedEx, Novo Nordisk, T-Mobile US, and UnitedHealth Group. The Motley Fool has a disclosure policy.
Billionaire investor Bill Ackman has built quite a reputation as an investor. He once focused primarily on activist short-selling, a period during which he waged an epic battle with another investing titan, Carl Icahn, over the company Herbalife.
Ackman currently runs a concentrated hedge fund, Pershing Square Capital Management, which typically holds 10 to 12 long positions at any given time.
Ackman and his team will occasionally engage with management teams, but in the form of "long-term constructive engagement." The fund has performed well, with a 10-year return of 380% net of fees as of March 31.
Now, Ackman is ready to open his hedge fund to U.S. retail investors. Here's what investors need to know about this complex initial public offering (IPO).
Image source: Getty Images.
The complex nature of the IPO The corporate structure of Ackman's fund can be difficult to understand. Ackman and his team, who actually manage the fund, operate under Pershing Square Capital Management, which had net assets of over $15.5 billion at the end of 2025.
Then there is Pershing Square Holdings (OTC: PSHZF), a European closed-end fund that essentially gives retail and institutional investors access to Pershing Square Capital Management's investments. Closed-end funds issue a fixed number of shares. The shares cannot be redeemed like an open-end mutual fund but trade on a secondary market, as a stock would.
Later this month, Ackman will conduct an IPO for Pershing Square USA under the ticker PSUS, which will trade on the New York Stock Exchange.
Similar to Pershing Square Holdings, Pershing Square USA will be a closed-end fund, meaning if you invest in PSUS, you are betting on Ackman and his team's investing prowess and their ability to generate market-beating returns from their stock portfolio. Ackman is seeking to raise at least $5 billion in the IPO and as much as $10 billion, and has already lined up a private placement of $2.8 billion.
As a sweetener, and likely because closed-end funds typically trade at a discount to their net asset value (NAV), investors of PSUS will also receive free shares in Pershing Square Inc. under the ticker PS, a separate company that Ackman is taking public in tandem with PSUS.
PS is the management company of PSUS. Investors in PS are effectively buying the business of managing the closed-end fund. The success of PS depends on how much capital Pershing Square USA can raise and, therefore, how much in fees it can collect annually.
For every five PSUS shares purchased, investors will receive one PS share, and Ackman is not planning to issue additional PS shares to anyone other than investors who purchase PSUS.
Pros and cons of buying the IPO Retail investors will have the opportunity to participate in the IPO, with PSUS shares expected to be priced at $50 per share. There are pros and cons for retail investors.
The advantage is that retail investors can gain access to a prominent hedge fund at a cheaper cost than what is typically charged. When you are an institutional investor in a hedge fund, you typically agree to a 2% annual management fee based on assets under management (AUM) plus 20% of a fund's annual profits above a certain threshold.
In PSUS, there will be no performance fees, so investors will only pay a 2% annual management fee, which is certainly toward the higher end of what most closed-end funds charge.
The big pros are that you get to invest alongside Ackman and his team, which conducts extremely thorough bottoms-up analysis before picking stocks. This process gives Ackman and his team high conviction in their picks.
Furthermore, because there are no redemptions, Pershing will essentially raise permanent capital that Ackman and his team can invest long term. Most hedge funds invest over a 12- to 18-month period.
Here are the stocks owned by Pershing Square Capital Management at the end of 2025 and their weight in the fund:
Brookfield Corp -- 18% Uber Technologies -- 16% Amazon -- 14% Alphabet (class C) -- 13% Meta Platforms -- 11% Restaurant Brands International -- 10% Howard Hughes Holdings -- 9.7% Hilton Worldwide Holdings -- 5.6% Alphabet (class A) -- 1.4% Seaport Entertainment Group -- 0.6% Hertz Global Holdings -- 0.5% The cons are that, like many other closed-end funds, PSUS will likely trade at a discount to its NAV, potentially over 10%, according to Eric Boughton, a portfolio manager at Matisse Capital, as reported by Barron's.
Boughton believes the lack of redemptions and the high relative management fee will lead to the discount, although the PSUS discount to NAV is likely to be much smaller than that of Pershing Square Holdings, which charges high performance fees and trades at a discount of over 23% to NAV, as of this writing.
These are all things for investors to keep in mind as they consider whether or not to invest.
Pershing Square founder and CEO Bill Ackman discusses the recent IPO of Pershing Square's new closed-end fund and alternative asset manager. Ackman emphasizes that this IPO marks the beginning of a long-term journey, with $5 billion in capital ready to be deployed within weeks.
NEW YORK--(BUSINESS WIRE)--Pershing Square Inc. (NYSE: PS) (“Pershing Square”) today announced that Pershing Square CEO Bill Ackman and CIO Ryan Israel will host a live Spaces event on X on Friday, May 1 at 9:00 AM ET to discuss the recently completed combined initial public offerings of PS and Pershing Square USA, Ltd. (NYSE:PSUS). The Spaces event on X will be open to the public and provide the opportunity for participants to ask questions and engage in dialogue with Bill and Ryan regarding P.
LONDON--(BUSINESS WIRE)--Pershing Square Holdings, Ltd. (LN:PSH) (LN:PSHD) today held its Annual General Meeting of shareholders (“AGM”) at Trafalgar Court, Les Banques, St. Peter Port, Guernsey, GY1 3QL. At the AGM, shareholders passed resolutions to: receive the annual report and the financial statements, re-appoint PSH's auditor, authorize the Directors to determine the remuneration of the auditor, re-elect all of the existing Directors with the exception of Bilge Ogut, renew PSH's share buy.
LONDON--(BUSINESS WIRE)--Pershing Square Holdings, Ltd. (LN:PSH) (LN:PSHD) today announced a share buyback program (the “Program”) for $100,000,000 of PSH's outstanding Public Shares on the London Stock Exchange. The Program is expected to be accretive to NAV per share and will reduce PSH's capital. Since PSH commenced its first share buyback program on 2 May 2017, PSH has repurchased 74,924,531 PSH Public Shares for a total of $1.9 billion at an average price of $24.99. Jefferies International.
NEW YORK--(BUSINESS WIRE)--Pershing Square USA, Ltd. (NYSE:PSUS) (“PSUS” or the “Company”) today announced that beginning with the second quarter 2026, Pershing Square Inc. (NYSE:PS), the parent company of PSUS’s Investment Manager, will release its financial results and host an earnings webcast and conference call with analysts. Concurrently with the release of Pershing Square Inc.’s results, PSUS will publish a quarterly portfolio review.
Immediately following the Pershing Square Inc. earnings webcast and conference call, Pershing Square CEO Bill Ackman and CIO Ryan Israel will host a live Spaces Q&A event on X at https://x.com/BillAckman, open to all investors, media and members of the public. Participants will have the opportunity to ask questions of management during the Spaces event. The Spaces event will also be simulcast on the Pershing Square Inc. website. A replay will be available on X and on the investor relations section of the Pershing Square Inc. website.
These quarterly communications will be in addition to PSUS’s regular semiannual and annual financial reporting.
The date for the second quarter 2026 portfolio review release and X Spaces event will be provided in due course.
About Pershing Square USA, Ltd.
Pershing Square USA, Ltd. is a closed-end management investment company managed by Pershing Square Capital Management, L.P.
Forward-Looking Statements
When the Company uses words such as "will", "expect" or similar expressions that do not relate solely to historical matters, the Company is making forward-looking statements. Forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking statements. The Company undertakes no obligation to update any "forward-looking statement" made in this press release, whether as a result of new information, changed assumptions, the occurrence of unanticipated events, or otherwise, except as required by law.
LONDON--(BUSINESS WIRE)--Pershing Square Holdings, Ltd. (LN:PSH) (LN:PSHD) today announced that beginning with the second quarter 2026, Pershing Square Inc. (NYSE:PS), the parent company of PSH's Investment Manager, will increase the frequency and depth of its investor communications. Each quarter, Pershing Square Inc. will release its financial results and host an earnings webcast and conference call with analysts. Concurrently with the release of Pershing Square Inc.'s results, PSH will publi.
Releases Date of First Quarter 10-Q and Financial Supplement
NEW YORK--(BUSINESS WIRE)--Pershing Square Inc. (NYSE:PS) (“Pershing Square” or the “Company”) today announced its quarterly investor communications format. Following each fiscal quarter, beginning with the second quarter of 2026, on the same day, Pershing Square plans to:
Earnings Release. Pershing Square plans to release its quarterly financial results before the opening of trading on the New York Stock Exchange. A portfolio company review will also be published concurrently with the publication of the Pershing Square earnings report. Earnings Webcast and Conference Call. CEO Bill Ackman and CIO Ryan Israel will lead a live audio webcast and conference call to answer questions from analysts and institutional investors. The event will be webcast live and will be accessible on the investor relations section of the Company’s website at https://pershingsquareinc.com/investor-relations/events/. A replay of the live webcast will be posted to the website within approximately 24 hours of the event. Live X Spaces Event. Immediately following the Company’s earnings webcast and conference call, Bill Ackman and Ryan Israel will host a live Spaces Q&A event on X at https://x.com/BillAckman open to all investors, media and members of the public. Participants will have the opportunity to ask questions of management during the Spaces event. The Spaces event will also be simulcast on the Company’s website. A replay will be available on X and on the investor relations section of the Company’s website. This quarterly investor communications format reflects Pershing Square's commitment to transparency and direct, open engagement with shareholders and the public.
Pershing Square will announce the date for its second quarter 2026 earnings release, conference call and X Spaces event in due course.
As a newly public company, Pershing Square is required to file a Form 10-Q for the first quarter ended March 31, 2026. Because Pershing Square's registration statement became effective on April 28, 2026, this filing covers a period that predates the Company's listing on the NYSE when it operated as a private partnership before the launch of the PSUS IPO. The filing is being made pursuant to SEC reporting requirements applicable to newly public companies.
Pershing Square expects to file its first quarter Form 10-Q on or about June 4, 2026. Concurrently with its first quarter 2026 Form 10-Q filing, Pershing Square expects to also publish a Financial Supplement for the quarter ended March 31, 2026, and the month ended April 30, 2026. The Financial Supplement includes the Company’s key operating metrics and fee-related earnings and distributable earnings, which are non-GAAP measures used to assess the Company’s performance, for the periods presented.
The Company intends to provide key operating metrics for the month ended April 30, 2026 in addition to the quarter ended March 31, 2026, in the Financial Supplement because it believes that this incremental information would be useful to investors in understanding its performance through the completion of the combined initial public offering of Pershing Square USA, Ltd. and the distribution and public listing of the common stock of the Company on the NYSE, which closed on April 30, 2026. Going forward, the Company intends to disclose financial supplements for completed fiscal periods only.
The first quarter Form 10-Q filing and Financial Supplement will be available on EDGAR and on the investor relations section of the Company’s website at https://pershingsquareinc.com/investor-relations/financial-reporting/.
Pershing Square uses its website at www.pershingsquareinc.com and/or social media outlets, such as its X account (@PershingSquare) and LinkedIn account (www.linkedin.com/company/pershingsquare) as distribution channels of important company information for purposes of Regulation FD. In addition, Bill Ackman, our Founder and Chief Executive Officer, may use his X account (@BillAckman) as a means of publicly disseminating current information about the Company and the core funds from time to time, including information about new and disposed of investments and hedges, as well as his views on macroeconomic, geopolitical and other developments. The information we or Mr. Ackman post through these channels may be deemed material company information, and Pershing Square intends to use Mr. Ackman’s X account for purposes of Regulation FD.
About Pershing Square Inc.
Pershing Square Inc. is the parent company of Pershing Square Capital Management, L.P., an SEC-registered investment advisor to investment funds and other companies, based in New York.
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. When Pershing Square uses words such as "will", "expect" or similar expressions that do not relate solely to historical matters, Pershing Square is making forward-looking statements. Forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking statements. Pershing Square undertakes no obligation to update any "forward-looking statement" made in this press release, whether as a result of new information, changed assumptions, the occurrence of unanticipated events, or otherwise, except as required by law.
WILLOW PARK, Texas--(BUSINESS WIRE)--ProFrac Holding Corp. (NASDAQ: ACDC) (“ProFrac”, or the “Company”) today announced financial and operational results for its 2025 full year and fourth quarter ended December 31, 2025. Full Year 2025 Results Total revenue was $1.94 billion compared to revenue of $2.19 billion in 2024 Net loss was $356 million compared to net loss of $208 million in 2024 Adjusted EBITDA¹ was $310 million compared to $501 million in 2024; 16% of revenue in 2025 compared to 23%.
, /PRNewswire/ -- ProFrac Holding Corp. (NASDAQ: ACDC) ("ProFrac"), in partnership with Seismos, Inc. ("Seismos"), announced today the successful completion of their fully closed-loop fracturing program, demonstrating the first real-time, intra-stage optimization utilizing in-well subsurface measurements and immediate surface actuation. The program took place in the Eagle Ford & Austin Chalk basins with a 4-well pad configuration. From February 13 to March 4, 2026, 183 stages were completed utilizing the ProFrac-Seismos leading-edge, closed-loop fracturing technology.
ProFrac and Seismos Deploy Closed-Loop Fracturing at Commercial Scale Using Direct In-Well Measurements Unlike systems that rely on offset well measurements to infer treatment well performance, this approach focuses directly on the targeted asset, the treatment well. It tracks subsurface performance through direct in-well measurements while pumping, detects deviations algorithmically, executes corrective action instantly, and validates the response within the same stage at any point. During deployment, average response time from data acquisition to automated treatment adjustment was under five minutes, with future targets below two minutes.
Industry research shows improved cluster-level fluid distribution, currently measured exclusively by the ProFrac-Seismos closed-loop system, can increase productivity by up to 20%, highlighting the value of real-time measurement and adjustment. These findings align with a recent URTeC study (Craig Cipolla et al. – URTeC 4044071, 2024), which quantifies the value of achieving uniform fluid distribution across all clusters.
Intervention Methodology and Execution
The ProFrac-Seismos closed-loop control logic activated when intra-stage performance deviations were detected against defined envelopes and triggers. When criteria were met, the Seismos proprietary measurement system (SAFA™) and completion logic prescribed corrective interventions, and ProFrac's surface automation system (ProPilot®) executed coordinated adjustments during the active stage.
Primary triggers included mid-stage perforation efficiency falling below the 70% threshold or a rapid PE degradation trend detected during the active stage. In response, surface parameters adjusted intra-stage included rate adjustments to improve cluster stimulation, friction reducer adjustments to maintain stable treating pressure, and other operational parameters controlled by ProPilot®.
As a result of the closed-loop optimization process, stages with intra-stage interventions experienced an additional 7% improvement in mid-stage perforation efficiency and 7.5% improvement in end-of-stage perforation efficiency compared to stages without intervention. There were no screen-outs attributable to intra-stage intervention adjustments and no additional non-productive time (NPT) introduced.
Why ProFrac-Seismos Closed Loop is a step change
Traditional frac execution often relies on treating pressure and post-job interpretation to infer downhole performance. Attempts to optimize the treatment well using offset responses face natural limitations because the treatment well lacks critical direct measurements indicative of performance. The ProFrac-Seismos closed loop changes that model by using real-time in-well measurements to guide decisions so treatments can be optimized as they are executed. Its integrated architecture is designed to scale control and learnings across stages and pads, combining real-time execution with a continuous improvement loop for design and operational decisioning.
Matt Wilks, Executive Chairman of ProFrac Holding Corp., stated, "Closed-loop fracturing begins with accurate, real-time subsurface measurements, but its full value is realized when that intelligence drives coordinated surface execution. Through ProPilot® surface automation and selective chemistry integration, we are enabling true intra-stage adjustments at scale and advancing the industry's first fully integrated closed-loop fracturing architecture. We cannot change the resource itself. However, we know that as many as 35% of perforations remain closed after completion operations. Machina™, our well optimization suite, exists to help operators access that remaining 35% and maximize the productive potential of every stage."
Controlling the Frac Outcome
"We are no longer just measuring the well; we are controlling the frac outcome," said Panos Adamopoulos, Founder and CEO of Seismos. "Seismos, with its proprietary measurements and completion logic systems, is the core intelligence layer that makes Closed-Loop Fracturing possible. By standardizing on Uniformity Index (UI) as the primary control metric, we ensure consistent, precise execution across all crews and basins, aligning real-time work with measurable production drivers."
About ProFrac
ProFrac Holding Corp. is a technology-focused, vertically integrated and innovation-driven energy services holding company providing hydraulic fracturing, proppant production, related completion services and complementary products and services to leading upstream oil and natural gas companies engaged in the exploration and production of North American unconventional oil and natural gas resources. ProFrac operates through four business segments: Stimulation Services, Proppant Production, Manufacturing, and Other Business Activities. For more information, please visit ProFrac's website at www.PFHoldingsCorp.com.
About Seismos
Seismos delivers actionable data intelligence across the energy infrastructure, enabling greater situational awareness, confident decision-making, and superior performance. The company pioneered real-time frac optimization in 2018, which led to its portfolio of Closed-Loop automation, including physics-based subsurface measurement technologies, advanced completion logic systems, AI-based frac advisory systems and a vast data repository of hundreds of thousands of stages.
ProFrac Holding Corp. (ACDC - Free Report) came out with a quarterly loss of $0.51 per share versus the Zacks Consensus Estimate of a loss of $0.44. This compares to a loss of $0.63 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -15.91%. A quarter ago, it was expected that this company would post a loss of $0.43 per share when it actually produced a loss of $0.6, delivering a surprise of -39.53%.
Over the last four quarters, the company has surpassed consensus EPS estimates just once.
ProFrac Holding Corp., which belongs to the Zacks Oil and Gas - Field Services industry, posted revenues of $436.5 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 11.91%. This compares to year-ago revenues of $454.7 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
ProFrac Holding Corp. shares have added about 78.9% since the beginning of the year versus the S&P 500's decline of 2.5%.
What's Next for ProFrac Holding Corp.?While ProFrac Holding Corp. has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for ProFrac Holding Corp. was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.41 on $404.82 million in revenues for the coming quarter and -$1.43 on $1.72 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Oil and Gas - Field Services is currently in the top 20% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the broader Zacks Oils-Energy sector, Natural Gas Services (NGS - Free Report) , is yet to report results for the quarter ended December 2025. The results are expected to be released on March 16.
This maker of natural gas compression equipment and industrial flare systems is expected to post quarterly earnings of $0.37 per share in its upcoming report, which represents a year-over-year change of +27.6%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Natural Gas Services' revenues are expected to be $43.92 million, up 8% from the year-ago quarter.
ProFrac is a leading U.S. oilfield services player that boasts a modernized frac fleet. U.S. completions activity had already bottomed before the recent geopolitical events, setting ACDC for higher EBITDA over the next quarters. A supply response from U.S. producers to the war in the Middle East will further tighten the frac market but is not a requirement for the company to improve its profitability.
ProFrac Holding Corp. (ACDC) witnessed a jump in share price last session on above-average trading volume. The latest trend in earnings estimate revisions for the stock doesn't suggest further strength down the road.
TechnipFMC (NYSE: FTI - Get Free Report) and ProFrac (NASDAQ: ACDC - Get Free Report) are both energy companies, but which is the better business? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, valuation, analyst recommendations and dividends. Insider and Institutional Ownership 96.6% of TechnipFMC shares are owned
For those looking to find strong Oils-Energy stocks, it is prudent to search for companies in the group that are outperforming their peers. ProFrac Holding Corp. (ACDC - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Oils-Energy sector should help us answer this question.
ProFrac Holding Corp. is one of 240 companies in the Oils-Energy group. The Oils-Energy group currently sits at #1 within the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. ProFrac Holding Corp. is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for ACDC's full-year earnings has moved 6.3% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
According to our latest data, ACDC has moved about 50.4% on a year-to-date basis. Meanwhile, stocks in the Oils-Energy group have gained about 26.3% on average. This means that ProFrac Holding Corp. is performing better than its sector in terms of year-to-date returns.
Another stock in the Oils-Energy sector, California Resources Corporation (CRC - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 42.5%.
The consensus estimate for California Resources Corporation's current year EPS has increased 90.8% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, ProFrac Holding Corp. belongs to the Oil and Gas - Field Services industry, a group that includes 19 individual stocks and currently sits at #35 in the Zacks Industry Rank. This group has gained an average of 37.8% so far this year, so ACDC is performing better in this area.
In contrast, California Resources Corporation falls under the Oil and Gas - Exploration and Production - United States industry. Currently, this industry has 35 stocks and is ranked #22. Since the beginning of the year, the industry has moved +24.4%.
Going forward, investors interested in Oils-Energy stocks should continue to pay close attention to ProFrac Holding Corp. and California Resources Corporation as they could maintain their solid performance.
Key Takeaways Screen picks ADM, BG, ACDC, CAH and CNC on net broker upgrades plus higher Q1 estimates.Strait of Hormuz disruption induced by the Iran war continues to grab headlines.ADM sees Nutrition improving while CAH leans on specialty distribution. Agreed that the first-quarter 2026 earnings season is in its nascent stage, but the start has nevertheless been impressive. Quite a few companies have come up with better-than-expected earnings per share and the trend may very well continue throughout the reporting cycle. In the meantime, uncertainty prevails, with the war in Iran continuing to grab headlines.
On Friday, oil prices dropped sharply, and stocks were buoyed by the announcement that the Strait of Hormuz was open again for commercial tankers, raising hopes for a peace deal. Over the weekend, the optimism faded, with Iran declaring the Strait, a vital route connecting the Persian Gulf to global markets, closed in response to the continuing U.S. Navy blockade.
Given this backdrop, investors would do well to keep a tab on broker-adored stocks like Archer Daniels Midland (ADM - Free Report) , Bunge Global (BG - Free Report) , ProFrac Holding (ACDC - Free Report) , Cardinal Health (CAH - Free Report) and Centene (CNC - Free Report) .
We have designed a screen to shortlist stocks based on improving broker recommendations and upward revisions in earnings estimates over the past four weeks. Also, since the price/sales ratio is a strong complementary valuation metric in the presence of broker information, it has been included. The price/sales ratio takes care of the company’s top line, making the strategy a well-rounded one.
Screening Criteria# (Up- Down Rating)/ Total (4 weeks) =Top #75: This gives the list of top 75 companies that have witnessed net upgrades over the last 4 weeks.
% change in Q (1) est. (4 weeks) = Top #10: This gives the top 10 stocks that have witnessed earnings estimate revisions over the past 4 weeks for the upcoming quarter.
To ensure that the strategy is a winning one, covering all bases, we have added the following screening parameters:
Price-to-Sales = Bot%10: The lower the ratio, the better. Companies meeting this criterion are in the bottom 10% of our universe of over 7,700 stocks with respect to this ratio.
Price greater than 5: A stock trading below $5 will not likely create significant interest for most investors.
Average Daily Volume greater than 100,000 shares over the last 20 trading days: Volume has to be significant to ensure that these are easily traded.
Market value ($ mil) = Top #3000: This gives us stocks that are the top 3000 if one judges by market capitalization.
Com/ADR/Canadian= Com: This takes out the ADR and Canadian stocks.
Here are five of the 10 stocks that made it through the screen:
Archer Daniels has been actively managing productivity and innovation as well as aligning work to the interconnected trends in food security, health and wellbeing. The company’s Nutrition segment is showing signs of recovery, led by improving performance in Human Nutrition.
Archer Daniels, currently sporting a Zacks Rank #1 (Strong Buy), expects its 2026 earnings per share to increase 26% on a year-over-year basis. ADM’s earnings surpassed the consensus mark in each of the last four quarters. The average beat is 3.8%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Bunge is a global agribusiness and food company worldwide. The company is executing a fundamental transformation anchored by the Viterra merger, expanding global origination, and processing scale and logistics efficiency. Management is prioritizing synergy capture, portfolio optimization and disciplined capital allocation to strengthen cash flows, reduce earnings volatility and enhance long-term returns across agricultural cycles.
Bunge, currently carrying a Zacks Rank #2 (Buy), expects its 2026 earnings per share to increase 8.1% on a year-over-year basis. BG’s earnings surpassed the consensus mark in each of the last four quarters. The average beat is 15.9%.
ProFrac Holding has a strong foothold in premium techniques and technology serving the energy industry. ProFrac Holding supplies technology and solutions mainly to exploration and production companies to extract resources more efficiently and cost-effectively using advanced fracking technology and services.
ProFrac’s well stimulation services are centered around key basins like the Permian, Eagle Ford, Haynesville, Appalachia, the Bakken and the Rockies, supporting future earnings growth. The expected long-term (3-5 years) EPS growth rate is an impressive 28.4%. ProFrac currently carries a Zacks Rank #2.
Cardinal Health, currently carrying a Zacks Rank #2, is expected to maintain its operational momentum in 2026, driven by steady performance across both its Pharmaceutical and Medical segments. In Pharmaceutical, growth will likely come from continued volume gains with large retail chains, strong specialty distribution and expanding partnerships with health systems.
Specialty therapeutics, particularly in oncology and chronic care, remain key revenue drivers, supported by Cardinal Health’s extensive distribution network and manufacturer service offerings. Rising biosimilar adoption and growing demand for patient support programs further strengthen the segment’s outlook. CAH’s earnings surpassed the consensus mark in each of the last four quarters. The average beat is 9.3%.
Missouri-based Centene’s revenue growth is driven by strong performance in its Medicare and Medicaid businesses, contributing to increased contract wins and expanding membership. The ongoing inclination for Medicare Advantage plans among the aging U.S. population continues to fuel consistent demand for Centene’s Medicare offerings.
The Zacks Consensus Estimate for Centene’s 2026 earnings is pegged at $3.01 per share, which indicates a 44.7% rise from the year-ago figure. CNC’s earnings outpaced estimates in three of the last four quarters and missed the mark once, the average being 60.6%. The stock carries a Zacks Rank #3 (Hold).
Momentum investing is essentially an exception to the idea of "buying low and selling high." Investors following this style of investing are usually not interested in betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time.
Who doesn't like betting on fast-moving trending stocks? But determining the right entry point isn't easy. Often, these stocks lose momentum once their valuation moves ahead of their future growth potential. In such a situation, investors find themselves loaded up on expensive shares with limited to no upside or even a downside. So, going all-in on momentum could be risky at times.
It could be safer to invest in bargain stocks that have been witnessing price momentum recently. While the Zacks Momentum Style Score (part of the Zacks Style Scores system), which pays close attention to trends in a stock's price or earnings, is pretty useful in identifying great momentum stocks, our 'Fast-Paced Momentum at a Bargain' screen comes handy in spotting fast-moving stocks that are still attractively priced.
ProFrac Holding Corp. (ACDC - Free Report) is one of the several great candidates that made it through the screen. While there are numerous reasons why this stock is a great choice, here are the most vital ones:
Investors' growing interest in a stock is reflected in its recent price increase. A price change of 9.5% over the past four weeks positions the stock of this company well in this regard.
While any stock can see a spike in price for a short period, it takes a real momentum player to deliver positive returns for a longer time frame. ACDC meets this criterion too, as the stock gained 46.7% over the past 12 weeks.
Moreover, the momentum for ACDC is fast paced, as the stock currently has a beta of 1.44. This indicates that the stock moves 44% higher than the market in either direction.
Given this price performance, it is no surprise that ACDC has a Momentum Score of B, which indicates that this is the right time to enter the stock to take advantage of the momentum with the highest probability of success.
In addition to a favorable Momentum Score, an upward trend in earnings estimate revisions has helped ACDC earn a Zacks Rank #2 (Buy). Our research shows that the momentum-effect is quite strong among Zacks Rank #1 and #2 stocks. That's because as covering analysts raise their earnings estimates for a stock, more and more investors take an interest in it, helping its price race to keep up. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Most importantly, despite possessing fast-paced momentum features, ACDC is trading at a reasonable valuation. In terms of Price-to-Sales ratio, which is considered as one of the best valuation metrics, the stock looks quite cheap now. ACDC is currently trading at 0.68 times its sales. In other words, investors need to pay only 68 cents for each dollar of sales.
So, ACDC appears to have plenty of room to run, and that too at a fast pace.
In addition to ACDC, there are several other stocks that currently pass through our 'Fast-Paced Momentum at a Bargain' screen. You may consider investing in them and start looking for the newest stocks that fit these criteria.
This is not the only screen that could help you find your next winning stock pick. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market.
However, keep in mind that the key to a successful stock-picking strategy is to ensure that it produced profitable results in the past. You could easily do that with the help of the Zacks Research Wizard. In addition to allowing you to backtest the effectiveness of your strategy, the program comes loaded with some of our most successful stock-picking strategies.
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Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at ProFrac Holding Corp. (ACDC - Free Report) , which currently has a Momentum Style Score of B. We also discuss some of the main drivers of the Momentum Style Score, like price change and earnings estimate revisions.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. ProFrac Holding Corp. currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market? In order to see if ACDC is a promising momentum pick, let's examine some Momentum Style elements to see if this company holds up.
Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.
For ACDC, shares are up 0.85% over the past week while the Zacks Oil and Gas - Field Services industry is flat over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 9.54% compares favorably with the industry's 3.96% performance as well.
While any stock can see a spike in price, it takes a real winner to consistently outperform the market. Shares of ProFrac Holding Corp. have increased 46.71% over the past quarter, and have gained 57.72% in the last year. On the other hand, the S&P 500 has only moved 3.07% and 33.83%, respectively.
Investors should also take note of ACDC's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now ACDC is averaging 1,213,263 shares for the last 20 days..
Earnings OutlookThe Zacks Momentum Style Score encompasses many things, including estimate revisions and a stock's price movement. Investors should note that earnings estimates are also significant to the Zacks Rank, and a nice path here can be promising. We have recently been noticing this with ACDC.
Over the past two months, 3 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost ACDC's consensus estimate, increasing from -$1.43 to -$1.31 in the past 60 days. Looking at the next fiscal year, 2 estimates have moved upwards while there have been no downward revisions in the same time period.
Bottom LineTaking into account all of these elements, it should come as no surprise that ACDC is a #2 (Buy) stock with a Momentum Score of B. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep ProFrac Holding Corp. on your short list.
Wall Street expects a year-over-year decline in earnings on lower revenues when ProFrac Holding Corp. (ACDC - Free Report) reports results for the quarter ended March 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis company is expected to post quarterly loss of $0.39 per share in its upcoming report, which represents a year-over-year change of -254.6%.
Revenues are expected to be $390.43 million, down 35% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 2.8% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for ProFrac Holding Corp.?For ProFrac Holding Corp., the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +5.98%.
On the other hand, the stock currently carries a Zacks Rank of #2.
So, this combination indicates that ProFrac Holding Corp. will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that ProFrac Holding Corp. would post a loss of$0.44 per share when it actually produced a loss of -$0.51, delivering a surprise of -15.91%.
Over the last four quarters, the company has beaten consensus EPS estimates just once.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
ProFrac Holding Corp. appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Expected Results of an Industry PlayerArchrock Inc. (AROC - Free Report) , another stock in the Zacks Oil and Gas - Field Services industry, is expected to report earnings per share of $0.45 for the quarter ended March 2026. This estimate points to a year-over-year change of +7.1%. Revenues for the quarter are expected to be $376.69 million, up 8.5% from the year-ago quarter.
The consensus EPS estimate for Archrock Inc. has been revised 5.5% lower over the last 30 days to the current level. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -2.22%.
This Earnings ESP, combined with its Zacks Rank #4 (Sell), makes it difficult to conclusively predict that Archrock Inc. will beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
WILLOW PARK, Texas--(BUSINESS WIRE)--ProFrac Holding Corp. (NASDAQ: ACDC) ("ProFrac" or the "Company") announced today that it will report its first quarter 2026 financial results prior to the Company's conference call, which will be webcasted on Thursday, May 7th, 2026, at 11:00 a.m. Eastern / 10:00 a.m. Central. To register for and access the event, please click here. An archive of the webcast will be available shortly after the call's conclusion on the IR Calendar section of ProFrac's invest.
WILLOW PARK, Texas--(BUSINESS WIRE)--ProFrac Holding Corp. (NASDAQ: ACDC) (“ProFrac”, or the “Company”) today announced financial and operational results for its 2026 first quarter ended March 31, 2026. First Quarter 2026 Results Total revenue was $450 million compared to fourth quarter revenue of $437 million Net loss was $81 million compared to net loss of $141 million in the fourth quarter Adjusted EBITDA¹ was $54 million compared to $61 million in the fourth quarter; 12% of revenue in the f.
ProFrac Holding Corp. (ACDC - Free Report) came out with a quarterly loss of $0.47 per share versus the Zacks Consensus Estimate of a loss of $0.37. This compares to a loss of $0.11 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -28.17%. A quarter ago, it was expected that this company would post a loss of $0.44 per share when it actually produced a loss of $0.51, delivering a surprise of -15.91%.
Over the last four quarters, the company has not been able to surpass consensus EPS estimates.
ProFrac Holding Corp., which belongs to the Zacks Oil and Gas - Field Services industry, posted revenues of $449.6 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 15.15%. This compares to year-ago revenues of $600.3 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
ProFrac Holding Corp. shares have added about 69.2% since the beginning of the year versus the S&P 500's gain of 7.2%.
What's Next for ProFrac Holding Corp.?While ProFrac Holding Corp. has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for ProFrac Holding Corp. was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.32 on $424.12 million in revenues for the coming quarter and -$1.20 on $1.68 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Oil and Gas - Field Services is currently in the bottom 20% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, KLX Energy Services (KLXE - Free Report) , is yet to report results for the quarter ended March 2026. The results are expected to be released on May 12.
This service provider to oil and natural gas producers is expected to post quarterly loss of $1.27 per share in its upcoming report, which represents no change from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 1.3% higher over the last 30 days to the current level.
KLX Energy Services' revenues are expected to be $146.5 million, down 4.9% from the year-ago quarter.
